Business Planning for Natural World Heritage Sites – A Toolkit
Business Planning for Natural World Heritage Sites
Shell l World Heritage Sites
Business Planning for Natura of the source, and copies are sent to UNESCO and to the http://whc.unesco.org/en/businessplanningtoolkit/ http://www.shellfoundation.org y, UNESCO World Heritage Centre Website: blication can be found at: blication 7 / S http://whc.unesco.org W / 8 0 0 2 - T L C UNESCO Shell Centre Centre Shell Foundation. World Heritage Centre UNESCO place de Fontenoy 7 75352 Paris 07 SP France Tel : +33 (0) 1-45-68-15-71 Website : Shell Foundation United Kingdom London SE1 7NA Tel: +44 (0) 207 934 2727 Production supervision: Marc Patr Reproduction is authorized , provided that appropriate mention is made An on-line version of this pu version of this An on-line © UNESCO / June 2008
Business Planning for Natural World Heritage Sites A Toolkit
Business Planning for Natural World Heritage Sites – A Toolkit FOREWORD
World Heritage site managers are called upon to deal with a wide range of challenges in carrying out of their duties. Wildlife incursions into agricultural areas, forest fires, introduced species, tourism pressures, poaching and community relations are just some of the issues they are required to manage on a regular basis. Most natural site managers are trained biologists with several years of field experience – giving them a solid grounding from which they can respond to these challenges.
However, effectively managing a protected area requires additional skill sets that are not always part of traditional staff training. Management challenges go beyond those related to ecosystem health and also include those related to running the protected area management organization. After all, if the organization is dysfunctional, the effectiveness of its staff, no matter how good, will be compromised and their ability to deliver on management objectives will be affected.
It is this gap in available capacity building support for World Heritage site managers that we hope to address with this toolkit. Commonly referred to as ‘business planning’, this term, originating from the private sector, refers to those processes common to assuring the effective operations of any organization, be it a large corporation, a small shop, or a protected area.
In this context, the World Heritage Centre is pleased to have been involved in developing this Business Planning toolkit for World Heritage site managers. Developed in the field with the participation of World Heritage site managers and Shell International staff with knowledge in the area of business planning, the toolkit provides a very practical and ground-truthed tool designed to help managers acquire or strengthen
Business Planning for Natural World Heritage Sites 2 er use of ld Heritage Kishore Rao or natural and Deputy Director ntinual efforts to ties, and more. l World Heritage Sites 3 UNESCO World Heritage Centre ed either directly by the Wor otected areas alike, in their co ganization position itself to make bett Business Planning for Natura velop the foundations for sustainable financing of activi nuals, courses and workbooks produc nagers and managers of other pr these tools should help the management or the tools should help these uding by IUCN, which is responsible for the World Heritage global training strategy f onses to potential risks, de improve management and better conserve their sites. mixed sites. We trust it will be used by World Heritage site ma Centre, or with the Centre’s support, incl essential business planning skills. Applying available resources, identify prepare resp This toolkit is a valuable addition to the growing number of ma
Business Planning for Natural World Heritage Sites – A Toolkit PREFACE
The effective management of any organization requires a blend of skills, access to finance and linkages to a range of value-adding partners. Historically, the focus was upon developing the conservation skills and income-generating abilities of managers of protected areas. Today, there is increasing recognition of the need to develop wider business planning competencies as a means to enhancing the effective management of these critical sites and biodiversity ‘assets’.
There is already a vast amount of advice on business planning. But most of this is written for enterprises aimed primarily at making money. Yet the fundamentals and practice of good ‘business planning’ – marketing to clients, setting budgets and managing finances, assessing and managing risk, staff training and development – are of equal relevance to organizations whose prime purpose is not necessarily to make money.
The need to develop business planning advice of relevance to managers of World Heritage sites and protected areas was recognized as an important addition to the ‘Enhancing our Heritage’ project – supported jointly by UNESCO and the UN Foundation - to develop generic tools, training materials and guidance for World Heritage managers.
The best place of course to source business advice is from people in business. As an independent charity with a focus on business-based approaches to tackling development challenges - as well as close links to a ‘big’ business, the Shell Foundation was ideally placed to pilot such a skills-sharing initiative. Through building on the ‘Enhancing our Heritage’ project, experienced business managers from both the Shell Foundation and Shell provided pro bono guidance to the managers of four natural World Heritage sites.
Business Planning for Natural World Heritage Sites 4 As with any genuine partnership, there was mutual sharing of experience. In addition to the specific business planning support provided to the managers of the natural World Heritage sites, business managers from Shell Foundation and Shell – with little previous knowledge or experience of conservation – gained hugely valuable insights about the management of areas of rich biological diversity.
The outcome of this pilot skills-sharing project is the production of this generic business planning toolkit. Every effort has been taken to ensure that it is simple, easily applicable, and can be used by people with no previous business experience or knowledge. I am sure it will be improved and updated through further use by practitioners.
Although the toolkit is one tangible outcome of this pilot project, for me the greatest benefit has been to demonstrate that through working together, conservation organizations and businesses have much to gain from sharing skills, tools and practice. I therefore hope this initiative serves as a springboard for greater skills-sharing partnerships between the worlds of conservation and business.
Dr Chris West Deputy Director Shell Foundation www.shellfoundation.org
Business Planning for Natural World Heritage Sites 5
ion was the Shell nt guidance wide range range wide vice-chair for o this process. o this process. ning experts in ples used by Shell rticular: l World Heritage Sites 6 ticipate and contribute t ch. Chris West of the Shell Foundat ate sector terminology and exam veral Shell International Ltd business plan Business Planning for Natura er, Shell Internationaler, Ltd.) and received consta slate a priv managers, resulting in a toolkit better reflecting their experience. hout the process. With the financial and technical support of s developed over a period of three years with the support of a l field tested toolkit would not have been possible. In pa eived by Marc Hockings (IUCN World Commission on Protected Areas Ronny Renaud and the SIF Board of Directors provided by Sue Stolton of Equilibrium Resear able to facilitate the participation of se
(Vallée de Mai, and Aldabra Atoll) (Bwindi Impenetrable National Park) esentatives of four World Heritage site management agencies agreed to par wa managers Site Heritage World for Toolkit Planning Business The from them, with additional valuable advice Science, Knowledge and Management) and Sachin Kapila (Group Biodiversity Advis of individuals and institutions. The initiative was first conc Foundation, the World Heritage Centre was personally engaged, providing valuable insights and advice throug Finally, and critically, repr field level development and application of the toolkit. Charlie Falzon helped tran International into a language more commonly used by protected area Uganda Wildlife Authority Edgar Buhanga, Richard Kapere, John Makombo, Moses Mapesa Without their active involvement, the development of this practica FoundationSeychelles Island LyndsayChongFleischer-Dogley, Seng, Frauke ACKNOWLEDGEMENTS Tubbataha Reef Marine Park (Philippines) Angelique Songco
Puerto Princesa Subterranean River National Park James Albert Mendoza
Shell International Judith Pollock, Sharna Jarvis, Karin Agabin, Paul van der Harten, Halima Besisira and Ioannis Topsakalidis
UNESCO World Heritage Centre Yvette Kaboza, Leila Maziz, Marc Patry, Ron Van Oers
Business Planning for Natural World Heritage Sites 7
Business Planning for Natural World Heritage Sites INTRODUCTION
Sources of World Heritage site finance are frequently diverse, often combining government grants with international aid, trust funds and direct income from resource users. But whatever the source, without good business planning skills it is unlikely that access to financial resources or use of available resources will be totally effective. A cursory evaluation of a typical site manager’s training background will often reveal a gap in terms of overall business planning capacity; several of the World Heritage sites taking part in the ‘Enhancing our Heritage (EoH)* project identified business and financial planning as a weakness in their initial assessment.
Most of the existing advice on business planning is written for enterprises aimed solely at making money; in contrast the primary objective of World Heritage sites is to achieve effective in-situ conservation and income generation is instead a means to that end. In these conditions, the concept of business planning becomes less about generating income and more about overall effective management of financial resources. Rather than showing increased profits and growth margins, the site manager’s business is to achieve maximum effectiveness in attaining the site’s overall objectives and conserving the major values. World Heritage sites are nonetheless ‘big business’ in terms of annual turnover and employees and assets/infrastructure, most national agencies having turnovers of millions of dollars a year. Given that much of this is in the form of state funding, there is a strong political imperative to demonstrate that funds are being used as efficiently as possible.
The need to develop World Heritage/protected area focused business planning advice was thus seen as an important addition to the overall aim of the EoH project in terms of improving management effectiveness of World Heritage sites. The opportunity to link protected area and World Heritage expertise with big business presented itself through the memorandum of agreement between Shell and UNESCO and the development of the ‘Shell Foundation – UNESCO/WHC Business Planning Skills’ pilot project.
The objective of the project was to develop a generic business planning toolkit to assist World Heritage site managers to build capacity in developing 3-year business plans. Shell Foundation, with support from Shell International business consultants, developed a draft Business Planning which aims to provide:
Business Planning for Natural World Heritage Sites 8 • Guidance on completing the main elements of a business plan • Development of capacity to realize the plan (finance and people) • Implementation of activities needed to achieve the planned goals.
Three pilot training projects were completed with the Seychelles Island Foundation (SIF), Uganda Wildlife Authority (UWA) and Tubbataha Reef Marine Park (Philippines), the aim of which was to transfer business planning skills to the management authorities of Vallée de Mai and Aldabra Atoll in the Seychelles, Bwindi Impenetrable Forest National Park in Uganda and to the Tubbataha Reef Marine Park managers. Each organization received support in developing a business plan through two in-country training visits and additional mentoring support during the project period. Following field testing, the Business Planning Toolkit was updated to fill identified gaps and improve the clarity of the language and was finalized by a protected area training specialist to ensure maximum applicability to World Heritage site managers.
Lastly, this toolkit contains 48 appendices. These are the products of actual site-level exercises carried out in the context of developing this toolkit and for this reason, vary significantly in style and approach. They are intended to give the users of this toolkit actual examples of how its application by World Heritage site managers on the ground.
The 48 appendices are provided in electronic format only and can found on the CD provided with this document. This toolkit, along with all appendices, can also be found online at the following address: http://whc.unesco.org/en/businessplanningtoolkit/
* The ‘Enhancing Our Heritage’ project, supported by the United Nations Foundation, aims to improve monitoring and evaluation i Assessment of Protected Area Mana World Heritage sites. The project team worked with staff in nine (importance and threats), planning, inpu assessment methods looking at management systems and pr
TheEnhancing toolkit ourprovides Heritage technical Toolkit guidance (which partnerson developing this publication) a monito builds on the IUCN World Commission on Protected Areas Framework for The management effectiveness. It wasgement designed Effectiveness, which is at sites and to identify and fill any gaps ts, processes, outputs and outcomes.
Tools and accompanying material can be downloaded from Worldbased Heritagearound analysis sites in ofAfrica, the wholeAsia andmanagement Latin America cycle, to including deve ocesses as well as social and ecological impacts. in collaboration with World Heritage site ma to provide a comprehensive assessment. ring system and a set of tools
http://whc.unesco.org/en/eoh/Businessnagers Planning to complement for Natura l existingWorld Heritagemonitoring Sites 9 for carrying out a detailed assessn natural lop andcontext test
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This toolkit is aimed primarily at users with no business knowledge or experience. All business concepts are It offers: introduced at a basic level and no previous knowledge of • Ideas on content and form business planning is required. All the templates and • Specific topics that frameworks used in the toolkit are designed to be simple • Tips to help you unblock your thinking. to use and easily applicable. you canats focus that on you can adapt This logo links you to real examples that might The toolkit is structured to enable different World Heritage help you compare with your own experiences. It site managers to implement the elements they need most refers to appendices found on the CD included urgently (according to time and cost limitations). It is thus with this toolkit, or available on-line at: built in distinct parts following the structure of a standard http://whc.unesco.org/en/businessplanningtoolkit/ business plan, as reflected in the following contents pages. This logo indicates exercises and templates that you might use to help think through issues.
THIS TOOLKIT IS AVAILABLE ON-LINE, TO BE DOWNLOADED, PRINTED OR USED AS AN INTERACTIVE INSTRUMENT:
http://whc.unesco.org/en/businessplanningtoolkit/
Business Planning for Natural World Heritage Sites 10 CONTENTS
3.2 Market Definition 48 Introduction to the Business Plan 14 3.3 Analysis of Political, Economic, Social and Technological (PEST) Factors 48 What is the ‘Business’ of Natural World Heritage Site 3.4 Customer Profile 50 Management? 14 3.5 Competition 53 Why Should Business Planning Matter? 14 3.6 Strategic Options 55 What is the Purpose of the Plan? 15 How Does a Business Plan differ from Section 4: Marketing Plan 57 a Management Plan? 16 4.1 Marketing Strategy 57 Scope and Content 17 4.2 Product 61 Some Advice 18 4.3 Pricing 62 4.4 Place (Distribution) 63 Section 1: Executive Summary 20 4.5 Promotion 63
4.6 Market Forecasting 64 Section 2: Institutional Analysis 22 2.1 Profile 23 Section 5: Operational Plan 66 2.2 Vision and Mission 28 5.1 Overview 66 2.3 Present Situation 32 5.2 Procurement 66 2.4 Stakeholder Analysis 34 5.3 Contractual Agreements 69 2.5 Analysis of Strengths, Weaknesses, Opportunities 5.4 Sustainable Financing 70 and Challenges (SWOC) 38 5.5 Health and Safety Issues 71 2.6 Objectives 43 5.6 Preventative Maintenance 72
Section 3: Market Analysis 46 3.1 Overview 46
Business Planning for Natural World Heritage Sites 11 Section 6: Human Resources 74 10.5 Tubbataha Stakeholder Analysis 6.1 Overview 74 10.6 Seychelles Islands Foundation SWOC 6.2 Organizational Structure 75 10.7 Uganda Wildlife Authority (UWA) SWOT Strategy 6.3 Staff Profile 76 Table 6.4 Gap/Organizational Needs Analysis 76 10.8 Seychelles Islands Foundation Objectives 6.5 Training 77 10.9 Seychelles Islands Foundation Profile 10.10 Seychelles Islands Foundation Market Analysis Section 7: Risk Analysis 79 10.11 PEST template and Seychelles Islands Foundation PEST analysis 7.1 Identifying and Evaluating Risks 79 10.12 Tubbataha PEST Analysis 7.2. Risk Management and Contingency Planning 80 10.13 Seychelles Islands Foundation Customer Profile 10.14 Tubbataha Competitor Analysis Section 8: Financial Plan 83 10.15 Tubbataha Strategic Options 8.1 Overview 83 10.16 Seychelles Islands Foundation market segments 8.2 Financial History 84 10.17 Tubbataha Market Positioning 8.3 Budget 84 10.18 Seychelles Islands Foundation Positioning 8.4 Financial Statements 85 10.19 Seychelles Islands Foundation Market Forecast 8.5 Future Financial Projections 86 Worksheet 8.6 Conclusions 88 10.20 Marketing Budget 10.21 Seychelles Islands Foundation Marketing Plan Section 9: Action Plan 89 10.22 Purchasing Policies 10.23 Procurement Standards Section 10: Appendices 90 10.24 Procurement Strategy 10.25 Procurement Standing Orders (available electronically only) 10.26 Standard Purchasing Procedure 10.1 Glossary of Acronyms and Terms 10.27 HSE Safety Policy for Small Businesses 10.2 Financing Protected Areas (IUCN) 10.28 Tir Coed HS Policy 10.3 Seychelles Islands Foundation Executive Summary 10.29 Seychelles Islands Foundation Organogram 10.4 Executive Summary Worksheet
Business Planning for Natural World Heritage Sites 12 10.30 Seychelles Islands Foundation Mechanics Gap Analysis 10.31 UWA Ranger Role Description 10.32 UWA Ranger Gap Analysis 10.33 Tubbataha Risk Response 10.34 Contingency Planning Table Template 1 10.35 Contingency Planning Template 2 10.36 Seychelles Islands Foundation Risk Evaluation 10.37 UWA Financial Statistics 10.38 Protected Area Monthly Budget Statement 10.39 Annual Proportion (amount) of Budget Allocations by Function 10.40 Annual Statement of Accounts for a UK Protected Area 10.41 Balance Sheet Template 10.42 Cash Flow Statement Template 10.43 Profit and Loss Statement Template 10.44 Projected Budget by Amount 10.45 Projected Budget by Proportion 10.46 UWA Draft Budget Projection 10.47 Activity List 10.48 Action Plan Framework
Business Planning for Natural World Heritage Sites 13 Introduction to the Business Plan
What is the ‘business’ of natural World Why should business planning matter? Heritage Site management? The business world has developed many skills at analysing its It is arguable that as with many businesses, the values of a markets, its products and services. It is also increasingly protected area are its products and its services. These are adept at talking the language of conservation. On the other what the managers ‘sell’, for instance, the uniqueness and hand, conservationists are expert in their field but generally rarity of a habitat or a species, their breathtaking beauty, the poor at talking the language of the business sector. In an lessons that they have to teach us about our evolution, or increasingly competitive world, it is important that the their critical importance as water catchments, carbon sinks economic, social and environmental sectors learn to talk a and sources of nourishment to humanity – both spiritual and common language. physical. In any case, what is essential is adopting a business planning A critical difference between World Heritage site management approach to conservation –a systematic way of identifying and mainstream business is that whatever enterprises are what are the assets of your site and what they are worth – in undertaken, they must not undermine the values for which other words, their values. This is important, because many theHeritage site has Toolkit been notified, and should in fact seek to enhance managers, communities and even governments take these them. things for granted, and can find it difficult to state exactly why they are so important. So any business plan must recognize these values, and also other important values associated with the site, even where The most important assets of an organization are its staff not specified in the nomination. Tool 1 in the Enhancing our and resources. It is critical that these are used in the best is especially useful in identifying these values. ways possible, and that they are sustained and enhanced. of the site and to conserve th Weto needits to remember that in the World Heritage context, Businesses are very good at analysing these things – they your businessoutstanding is literally universal to guarantee value the long-term integrity have to be because they operate in a competitive world.
ose components that contribute
.
Business Planning for Natural World Heritage Sites 14 A central part of the World Heritage Site Manager’s job is to Finally, it might be useful to look at the extracts taken from convince donors, governments and citizens (in the language IUCN’s guidelines ‘Financing Protected Areas (Appendix of business) to ‘buy’ its products and services in an 10.2), which provides further insights into the issues appropriate way, and then to demonstrate that their discussed in this toolkit. ‘investment’ is worth it. At the same time managers need to ensure that in ‘consuming’ our sites, nature’s capital assets What is the purpose of the plan? are not diminished, but can be sustained. You might be forgiven for thinking that too much time is being devoted to strategy at the expense of what In the effort to secure sustainable financing for protected organizations are really here to do – to conserve species, and areas, in general, a manager who can demonstrate that to help rural indigenous people. And in a few cases, you existing resources are already being effectively allocated would be right. through systematic business planning processes, may more likely succeed in convincing national authorities and/or This is why it is vital to see any plan as a flexible tool, not a external donors that an increase in their financial support will straitjacket; and the organization as the maker and be a good investment. manipulator of that tool, not its slave.
The business plan is central to this endeavour. It should not It is important to know what the plan is for. In some cases, it be seen as a radical departure from existing best practice. may be for an organization to plot its future course. In other This is simply a way of setting out systematically what good cases, it may be to help an organization get funds and to managers should be doing in any case. demonstrate how it will spend them – these may be capital funds, to inject money into building business infrastructure It is worth distinguishing between a business plan and and/or revenue funds to provide an income until the business planning as a process. Some of the activities organization is self-supporting. In many cases a business plan described in this toolkit reflect good practice in business has to be written for a specific programme or project, and has planning – for instance carrying out gap analysis or training to show how the funding for that programme or project will needs analysis. However, much of the processes described be managed. are not presented in most business plans (although their results might be).
Business Planning for Natural World Heritage Sites 15 In many cases a business plan encapsulates the spirit of the • Ensure that the organization's goals can be achieved organization and where it wants to go, while at the same time with the resources available to it mapping out a clear and realistic route of how it will get there. It provides the route from A to B and on to C, and • Identify any key risks that could prevent an ensures that progress is constantly under review and goals organization meeting its goals and put plans in place to adjusted accordingly. mitigate these
As such, a business plan has often been described as a • And achieve a smooth handover at times of staff journey, not a destination. change.
A business plan helps managers and stakeholders to Additional reasons might be to: understand how business will be managed in the most effective way, and to ensure that the organization is properly • Support applications for financial support, for example accountable for the use of any funds it receives. to the World Bank, UNDP, government departments, sponsors and charities For managers of protected areas, the primary reasons for writing a plan will be to: • Inform strategies for particular capital or revenue initiatives • Provide a clear, realistic, and practical blueprint for an organization’s future development • Review organizational structure, approaches to training and personnel management, technological resources or • Enable everyone in the organization, including its board monitoring procedures. or management committee, to agree upon and share common goals How does a business plan differ from a management plan? • Ensure the participation of key stakeholders (such as There are a number of similarities, and the same information donors, politicians, bankers, sponsors, and other should be used to develop and inform both types of plan. So groups with which an organization is likely to work) where a business plan relates to a particular protected area, it
Business Planning for Natural World Heritage Sites 16 should use information from the management plan, such as plan – you need some clarity about the ‘product’ you are vision and mission. However, the business plan might relate ‘selling’, as well as the actions you need to take, who you will to an agency’s corporate strategy rather than to a site’s work with etc. management plan, and clear vision and mission statements (and other useful information found in a management plan) It is worth pointing out that a business plan does not need to might not exist. replicate areas already covered in a management plan, but it can cross-reference them and act as a complementary While the management plan is about setting out the actions document. The diagram at the end of Appendix 10.2 needed to deliver the purposes for which a protected area has (Financing Protected Areas) will help you to think of their been designated, the business plan focuses on the financial relationship. anddo weorganizational know whether dimension we have – in enoughother words,well-trained how andto resourcemotivated the people?’ delivery ‘How of do the we management plan. It is Scope and content criticalthat thereforethey have to the recognize right equi that the business plan ensures The scope and complexity of such documents varies greatly thathave the managementavailable match plan’s the actionswork are being achieved, and from one organization to another. Having too much that moneyits goals do can we be needmoni toredto negotiate on an ongoing in order basis. to continue our information is as bad as not including enough. It can be time-
work?’ ‘Why do we need it anyway?’know that ‘How they muchare safe, should and we beconsuming and wasteful to provide surplus information. It The business plan aims to answerpment?’ such questions‘ Does the as money– ‘How we goes without saying then that a business plan is likely to be investing for future programmes? read by a wide range of audiences, and it should be capable and effective way of we need to do?’ ‘ How much of being understood by them all. However, you will need to think about who your plan is aimed at, and ensure that it using our resources?’ attracts them. It is important to know what the plan is for, ’ ‘Is there a more efficient and who its intended users are – this will help define its scope and content.
Most plans cover a 3-5 year period, and provide considerable detail for Year 1, with outline forecasts for future years. Each Obviously, some of the information you need to answer these year, forecasts are updated in the light of the realities questions will be used in the production of the management experienced. The mission and overall aim should remain the
Business Planning for Natural World Heritage Sites 17 same, but financial factors, law and politics; staff changes, As much as three to four months should be allowed, unanticipated opportunities and threats, market and other depending on the size, purposes and complexity of the external trends will all influence changes. organization.
At its most simple, an organizational and business plan Solid blocks of time need to be allocated to this process. It is contains 7 key sections: not something that can undertaken in the occasional five minutes. 1. An overview of your organization, its Mission and Aims 2. A clear statement of objectives A few tips to help you start 3. An assessment of the context and market in which an • Agree who will collect all the relevant information, and organization is operating who will coordinate the writing of the plan 4. Budgets and financial forecasts to show how objectives will be reached, and assessment of risks along the way • Decide on a logical deadline for the production of the 5. Implications for management structure and staffing final document: for example, it may need to be 6. Timescales and Activity Plan produced to support a funding application on a specific 7. Milestones and Monitoring. date. Many plans need to be finalized by a particular date in order to inform budgetary rounds This toolkit addresses these issues, as well as operational and safety matters. • Agree a schedule to enable that deadline to be achieved, and agree interim reporting dates. As a rule, technical information should be presented as an appendix rather than within the text of the plan itself. Five things to do if you get blocked Some advice There are many reasons why it may be difficult to get started, Getting down to it and there may also be stumbling blocks along the way. Here Writing a plan can take a considerable amount of time, and it are a few tips to help overcome them: can be difficult to sustain the effort required. Give the process momentum by agreeing deadlines. • Analyse the problem:
Business Planning for Natural World Heritage Sites 18 o Is it because the timescale is unrealistic and needs adjusting? • Look at some examples o Is it because you do not feel equipped to No two business plans will be the same, but looking at start/continue? plans that similar organizations have completed can o Perhaps you need to ask for outside help? give you ideas and confidence. o Perhaps you do not have enough information and need to spend more time collecting it? • Learn for free o Is it that some sections need to be developed by When you have been through this process once it will someone other than you? never be as difficult again, and it is a major asset to o Would a different working environment (a library, your range of skills. See it as an opportunity to or perhaps home) be more productive? broaden your knowledge base, and one, which develops your personal expertise. This approach can • Remember you are not working on this alone serve to motivate you even when the going gets tough. It is a team effort (or should be if it is going to be worthwhile). Ask for help from specialist colleagues and advisors. That is what they are there for.
• Start with the easier parts You do not have to write the plan in the exact order in which it will finally appear, so begin with the parts you are confident about.
Business Planning for Natural World Heritage Sites 19 Section 1: Executive Summary
The Executive Summary is a critical part of the business An Executive Summary is typically structured in way that plan – because of pressures, this may be the only section that includes: the evaluator of the plan will read. This is especially important when the plan is subject to an approval decision by the board Vision and or to a funding decision by a financial institution. Mission
It summarizes the most important points from the whole plan (and thus demonstrates the authors’ ability to pick out the important information from the details), and provides a About the What is the perfect opportunity for the author to ‘sell’ the plan to the Organization ‘Market’? stakeholders.
The role of the Executive Summary is two-fold. Strategic Analysis • It should demonstrate to the reader that you have an accurate understanding of the business • It must encourage the reader to continue reading in order to obtain a fuller picture of the organization. Financial Plan Remember… Write it last. Although it is the first thing a reader will see in your plan the Executive Summary should be written last.
Keep it short. Your purpose is to try to ‘sell’ your plan to someone that is working to tight time pressures – you need to Conclusions ‘hook’ their interest.
Business Planning for Natural World Heritage Sites 20
Here is a business plan executive summary for the Seychelles Islands Foundation, a public trust established by the government to manage a World Heritage Site. The purpose of its business plan is to identify tourist markets for its products. Note that the type of executive summary should reflect the nature and purposes of the organization presenting it.
Appendix 10.3: SEYCHELLES
ISLANDS BUSINESS PLAN EXECUTIVE SUMMARY
You may want to use the accompanying executive summary worksheet to check that you have presented the key elements in your business plan.
Appendix 10.4 EXECUTIVE SUMMARY WORKSHEET
Business Planning for Natural World Heritage Sites 21 Section 2: Institutional Analysis
The institutional analysis ‘sets the stage’ for your business plan. It:
• Provides important information about your organization, its vision, its products and its people • Assesses the organization’s strengths and weaknesses, and provides an insight into the future • Sets goals and objectives upfront so that the reader can see how these are to be accomplished through the business plan.
Typically, some of the topics that should be included in this section are: Profile, Vision and Mission, Situation Analysis, Stakeholder analysis, SWOC (Strengths, Weaknesses, Opportunities and Challenges) Analysis and Goals.
The following pages will take you through these parts of this section.
Business Planning for Natural World Heritage Sites 22 2.1: Profile – What kind of organization are we?
Profile communication budgets may be much higher, while The purpose of this subsection is to provide a ‘snapshot’ of interpretation costs, sales of park-related products etc are the organization and quickly help the reader understand some unlikely to feature heavily. basic facts about it. Many protected areas are managed by national or local The main areas that have to be discussed in this subsection government agencies, others by NGOs expressly established are the organization’s legal structure, its capital and for the purpose. Some of these will be 100% dependent on organizational structure and a brief description of its products government support; others may be required to generate and services. income from other sources including trading. Some are fortunate enough to have been left large legacies, and may The information that will be included in this section depends be able to use only the interest. on a number of factors, including the type and size of organization that the plan relates to, the nature of the So there is really no such thing as the definitive business plan organization’s work, and the source and scale of budget. – the only rule is that it must be fit for its purpose.
For example, a small site, close to major population centres and subject to heavy visitor pressure, may be managed by a departmental body with a strong visitor management priority (an example might be Keoladeo Bird Sanctuary in India). Its resource requirements are likely to be different, say, from an extensive, rugged and remote site subject to poaching and cross border incursions (many such examples exist in Central and South East Asia and in parts of Africa). In the latter case, significant human and material resources will be used in patrolling and enforcing and vehicle, accommodation and
Business Planning for Natural World Heritage Sites 23
Basically, a business plan for a protected area and its organization might refer to the following:
Its structure and constitution Its people Name of organization Management role and function Head office address What are its institutional values? How is the organization Legal context – international, national Is there a board? How is it selected? What was it set up to do? Number of employees and roles What is its authority? Summary description steered or directed? What kind of an organization is it? Policy on health and sa What is the status of issues
manages? Organogram fety and human rights What are the site’s values? the site or area it
Its finances Budget performance How does the organization derive its reserves of funding? Statement on financial control systems How is money accounted for? Capital assets – built assets, equipment etc. What items does the organization own,funds? Grant aid, the turnover of e.g. ve Financial table – proposed net expenditure against statutorytrading headings activities, Summary of accounts hicles, radios, uniforms? and what are they worth? What is Business Planning for Natural World Heritage Sites 24 An organogram is simply a visual representation of an Here is another, this time relating to the management of organization’s departmental structure and lines of Chumbe Island by a world-renowned private ecotourism responsibility. The one shown here is taken from Virachey enterprise, linked to the World Heritage site of Zanzibar: National Park in Cambodia.
Advisory committee: village, university and government representatives
CHICOP Ltd Resource Facilities, operations protection: and maintenance: Coordinator and Ecolodge manager and rangers support staff Visitor experience and enjoyment Education and tourism staff
You can see immediately that this is a hierarchical Administration organization in which the lines of command and accountability staff are clear. Everybody is identified, which may not always be necessary for the purpose of the business plan.
Business Planning for Natural World Heritage Sites 25 The company in this case is at the centre of the structure, directing the three key sections, each of which is supported by the administrative team. Interestingly, the committee is an advisory, rather than a steering committee. Given the brevity of such visual presentations, the appropriate selection of words is critical in projecting the correct impression of the kind of organization represented.
Business Planning for Natural World Heritage Sites 26
WORKING OUT YOUR ORGANIZATION’S ORGANOGRAM
There are a number of ways in which you can do this. For a small NGO it may be a simple and relatively ‘flat’ organogram, or it may be very hierarchical. If your organization is part of a larger group (which is likely in the case of World Heritage site management) you may want to show how it links into the larger institution.
In any case, the most important thing is for it to be clear. 1. Identify all the sections and/or individuals in the organization. 2. Using cards or stickers, write each section or job title down on a separate card. 3. Arrange them in different ways on a larger sheet (say a flipchart) until you are satisfied that the arrangement you have is the most appropriate, and agree upon why it is the best arrangement. 4. Link the cards up using either or or even to show lines of responsibility or communication. 5. Draw it up as your definitive organogram. You might want to use different colours or shapes to distinguish between different parts of the organization.
Business Planning for Natural World Heritage Sites 27
2.2: Vision and Mission - What are our values and aspirations?
The Vision is simply a picture of a desired condition of the Some examples of vision statements: ‘environment’ that an organization has been established to improve or manage. It is aspirational, and is based on realistic ‘Our vision is of a world of which all people have access to long-term projections of the present state of the ‘world’. safe water and sanitation’
Depending on the nature and size of the organization and local, national and global factors (such as politics, funding, ‘A just world that values and conserves nature’ environmental factors, demographics etc), the vision could stretch from a few years into the future up to ten/twenty years’ time. ‘A world in which every person enjoys all of the human rights enshrined in the Universal Declaration of Human Since the vision will influence a wide range of stakeholders, it Rights and other international human rights standards’ needs to be communicated widely, needs to be understood by a wide range of people (including internal office and field staff, professionals, politicians, civil leaders and citizens, private developers and international tourism interests), and The organizations are WaterAid (an NGO that promotes clean needs to be acceptable to them all. water for all); Amnesty International (a human rights organization); and IUCN, the World Conservation Union. It The vision needs to avoid abstract and meaningless should be obvious which statement belongs to which statements, and must relate to the organization’s role in organization. protecting and enhancing natural and cultural values, and/or working with people.
Business Planning for Natural World Heritage Sites 28 Not all vision statements are as brief as these. Here is an Another example comes from WWF China, and refers to the example from a UK protected landscape authority (the Peak Yangtze River: District National Park), whose function is to conserve biodiversity whilst promoting the economic and social ‘A region where a living river links the Tibetan interests of the people who live there: Plateau and the Pacific; where people thrive in harmony with nature, pandas play in the forests, ‘Our vision is for: children swim with dolphins and fish in the clear A conserved and enhanced Peak District where the natural water, pheasants dance among the rhododendrons, beauty and quality of its landscapes, its biodiversity, and the cranes sing at sunrise. A region where tranquility, cultural heritage and the settlements within it natural cycles sustain a rich and ancient culture.’ continue to be valued for their diversity and richness. being managed
A welcoming Peak District where people from all parts of our Obviously, the more complex the context, the more diverse society have the opportunity to visit, appreciate, challenging it will be to develop a vision that everyone can understand and enjoy the National Park’s special qualities. subscribe to. Note that the vision is for the resource that is
, rather than for the organization. A living, modern and innovative Peak District that contributes positively to vibrant communities for both residents and The mission statement, on the other hand, is a broad people in neighbouring urban areas, and demonstrates a statement about how the organization itself plans to realize high quality of life whilst conserving and enhancing the this condition – its aim. For example, the three organizations special qualities of the National Park. mentioned earlier have the following mission statements.
Again, it should be obvious which organization is which: A viable and thriving Peak District economy that capitalises on its special qualities and promotes a strong sense of identity.’
Business Planning for Natural World Heritage Sites 29 Ideally, the mission statement should describe exactly what ‘To influence, encourage and assist societies throughout the you will be doing for the next 3-5 years and what you want to world to conserve the integrity and diversity of nature and to achieve. The formulation of these statements is a team ensure that any use of natural resources is equitable and process, so it will be helpful to bring a representative group of ecologically sustainable’ interests together in a series of workshops to formulate your vision and mission.
‘… aims to work through partner organizations to help poor people in developing countries achieve sustainable improvements in the quality of their life by improving domestic water supply, sanitation and associated hygiene practises’
‘…to undertake research and action focused on preventing and ending grave abuses of the rights to physical and mental integrity, freedom of conscience and expression, and freedom from discrimination, within the context of its work to promote all human rights.’
Business Planning for Natural World Heritage Sites 30
YOUR VISION AND MISSION This will require a team effort, with discussions in smaller groups and plenty of feedback, so that everyone understands and agrees. 1. The first task is to get agreement on what the organization has been set up to do – what is it here for? This can be brainstormed in small groups and then discussed together. By asking questions and clarifying, it should be possible to reduce the number of words to a few sentences – or even one. 2. Next, get everyone to consider what needs to be done by the organization in order to achieve this. Again by a process of small group discussions, feedback, questioning and clarifying, a simple statement can be agreed upon. 3. If necessary, test the statements out to see if others can understand and agree upon them. 4. The important point is – are they clear? Are they agreeable to all? Can they be achieved?
These are your vision and mission statements.
OUR VISION IS: OUR MISSION IS:
Business Planning for Natural World Heritage Sites 31 2.3: Present Situation - What is the state of our organization?
The purpose of this subsection is to provide a brief overview of the current position of the organization.
For managers of protected areas, the questions here really relate to the link they have with government and its agencies in the application of policy, and with national and international laws and conventions – their context. The questions also concern the functions (as opposed to the role) of the organization (in effect a summary of all the job descriptions of its members).
An important consideration relates to the state of assets – the ‘goods’ you are selling. Most importantly, they help to position your organization in relation to others. If you are an NGO or small business related to protected areas, it will help you to think of the scope and scale of your organization.
Bringing together this information will allow for further analysis of the organization’s strengths and weaknesses.
Refer to the Enhancing our Heritage Toolkit, Tool 4 for guidelines on aspects of this subsection.
Business Planning for Natural World Heritage Sites 32
Depending on your function, analyse your situation according to these criteria:
CRITERIA PROTECTED AREA MANAGEMENT NGO/SMALL ENTERPRISE CONTEXT International treaties/obligations National and local regulations National laws Statutory requirements POSITION Department/agency line Similar organizations competing Other related Government departments/agencies Competing interests in Government Relative strengths/weaknesses of departments/agencies Stated support of Government Similar organizations carrying out similar functions ASSETS Values for WH purposes Products on offer; values to whom? What is the Other values value of the operation? Who is it selling to? FUNCTION Scope and scale of operations – managerial, How does the organization function – technical, estate, interpersonal etc – what is purchasing, adding value, selling, distribution, everyone actually doing? marketing etc.
Business Planning for Natural World Heritage Sites 33 2.4: Stakeholder Analysis - Who are our ‘customers’?
This subsection analyses those institutions and individuals who have an interest in the organization and the work that it does. These will include its own internal staff and the board or committee that steers its activities, the politicians that decide on its role and on its budget, the wide range of ‘customers’ that rely on the natural resources under the stewardship of the organization (which may be located close by or a long way away), and a broader stakeholder interest that may include academics, researchers, tourism interests, and the global partnerships that raise awareness in its values (such as WWF, IUCN etc).
Since the operations of the organization are likely to influence a considerable range of interests in various ways, it is important for it to consider how these interests are affected, how able they are to engage with it, and how powerful they are in facilitating or preventing the organization’s effectiveness.
In carrying out such an analysis, it is worth bearing in mind that stakeholder relationships with each other and with the Toolkit organization are dynamic – they might be hostile or supportive depending on the management context.
It is worth also referring to the Enhancing Our Heritage , Tool 3 in connection with this section.
Business Planning for Natural World Heritage Sites 34 Below are a number of ways to represent Make it work Provide loyalty stakeholder interests and positions. ‘Belong’ to the Manage finances, family human resources Team Make executive decisions members Functional Steer, advise and support the departments executive
Management Visit the area Internal Stay and buy Customers products ‘Consume’ nature Project, organization or operational Vendors context Supply materials and equipment Governments Legislate Regulate External Media Competitors Give guidance Challenge Provide funds Feature Sponsors Community Provide Raise awareness similar services Support iconic This generic chart simply identifies Use resources species who the key stakeholders are, and Vote and places what their functions are, but Challenge authority without analysing them in any Monitor/advise at international level way. It is an important first step. Adapted from: Larry W Smith. Software Technology Support Centre.
Business Planning for Natural World Heritage Sites 35 Stakeholders represent a variable range of powers and Using this approach it is possible to produce a picture of the interests in an organization and its work. It is important to relationships between stakeholders and the organization and remember that these change, and that stakeholders form between stakeholders themselves. different alliances, according to the context. You may receive Stakeholder Expectation Power and Commonality different levels of support according to the issue or strategy Type and Influence and Conflict you are trying to address. Objectives Staff As a general rule, this matrix provides a useful way of relating Communities to stakeholders: Tourists Local politicians Local NGOs International Keep satisfied Engage closely, NGOs High and influence Sponsors Charitable actively Power donors International Monitor donors Low Keep informed (minimum Regulators effort) Government
Before doing the exercise, look at the example from the Low Interest High Tubbatha Management Office in the Philippines:
Source: DFID
Appendix 10.5: TUBBATAHA STAKEHOLDER ANALYSIS
Business Planning for Natural World Heritage Sites 36
Stakeholder Expectation and Power and Influence Commonality and Conflict Objectives
Business Planning for Natural World Heritage Sites 37 2.5: Analysis of Strengths, Weaknesses, Opportunities and Challenges (SWOC)
A SWOC (or SWOT - strengths, weaknesses, opportunities, Often, the authors of such plans are unable to make clear threats) analysis is found in almost all business plans and distinctions between the strengths/weaknesses and provides very useful insights into the organization’s current opportunities/challenges sections. In general: and potential functioning. • Strengths and Weaknesses are internal factors that It is simple in concept (usually presented in a matrix no more describe the present over which you have some level than a page or two in length), and gives the management an of control or influence outline of the perceivable major issues affecting its organization and its ‘competitors’ (i.e. as providers of • Opportunities and Challenges are usually external conservation and rural development activities, tourism issues that describe a potential that you may not be opportunities and political priorities) and provides a basis for in a position to control. developing strategies. The elements in the SWOC are almost always interlinked. For Some factors will be more important than others, and it may example, an organization’s strength, such as excellent be difficult to assess just how critical one factor might be, so communications skills, will relate to an opportunity to use ranking them according to an agreed criteria (such as that skill to raise awareness about the work of the financial or institutional capacity, institutional knowledge) is a organization. Likewise, a weakness, such as a lack of up-to- useful exercise. date field equipment, may present a challenge when it comes to monitoring poaching or encroachment activities. If an organization is complex, it is important to carry out such an exercise with a multi-disciplinary team, as, for example, SWOCs can be expressed according to a range of themes, what the conservation group may perceive as an important such as management, equipment, visitor facilities etc. Here is weakness or threat, may not be seen as a major concern by an example from the private sector. Note how the the financial department and vice-versa. opportunities and challenges are externally driven:
Business Planning for Natural World Heritage Sites 38 Theme Strengths Weaknesses Processes High productivity Slow time to market Management Good at acquisitions Poor staff management Marketing and sales Good at direct sales Poor market research Other skills Excellent R&D Poor maintenance Experiences Success overseas Health and safety problems Intellectual property Branding, trade secrets Expiring patent Premises Excellent location Unwanted lease Plant and machinery Specialist equipment Worn-out plant Information technology Good management information Poor automation Finance Healthy cash flow Burden of debts Theme Opportunities Challenges Market Market growing rapidly Market reaching maturity Industry Competition fragmented Competitors have strong R&D Industry association Compliance with standards Meeting standards = increased costs Labour market Locally available skills Disruptive strikes Financial markets Low-cost funds Higher borrowing costs = reduced customer spending power Exchange rates Cheaper imported raw materials Cheaper competing products Green (environmental) lobby Sell more eco-friendly products Cost of anti-pollution legislation Economic trends Economic expansion = boost demand Growing unemployment = reduced demand Government policies Tax holiday Incentives for rival companies Natural disasters Sell specialized equipment Loss of production or data
Business Planning for Natural World Heritage Sites 39 Some of these are highly relevant to natural World Heritage site management. However, the SWOC should also relate to Appendix 10.7: UGANDA the values of the site, and of course any threats that might WILDLIFE AUTHORITY: undermine the integrity of the site should be seen as SWOT STRATEGIC TABLE challenges. So a SWOC for a natural World Heritage site should identify the strengths and weaknesses of both the organization and the site.
Appendix 10.6: SEYCHELLES
ISLANDS BUSINESS PLAN: SWOC ANALYSIS
Having completed a SWOC analysis, the key question for your organization should be ‘What do we do to optimize on our strengths and the opportunities that may present themselves, and how do we address our weaknesses and any external challenges or threats that may occur?’ It is important to determine the actions you need to take in order to meet the implications of your analysis.
The following example from Uganda shows how, having considered its position, the organization identified some key actions that need to be prioritized.
Business Planning for Natural World Heritage Sites 40
SWOC ANALYSIS TEMPLATE
Internal forces External forces Strengths Opportunities
Weaknesses Challenges
Business Planning for Natural World Heritage Sites 41 SWOC Strategic Table Assess your SWOC Analysis and evaluate potential short-term and long-term organizational responses.
Major opportunities Major challenges Primary strengths Invest: Clear matches of strengths and Defend: Areas of threat matched by areas opportunities lead to comparative of strength indicate a need to mobilize advantage. resources either alone or with others.
Primary weaknesses Decide: Areas of opportunity matched by Damage Control: Areas of threat matched areas of weakness require a judgment call: by areas of weakness indicate a need for invest or divest; collaborate. damage control.
Business Planning for Natural World Heritage Sites 42 2.6: Objectives - What do we intend to achieve? reinvest in activities. Non-profit making organizations must show that they will carry out their functions effectively and This element of the business plan translates the broader efficiently using the investment that they are given. In some thinking behind the vision and mission, and the analysis of the cases, such organizations are required to generate a certain organization’s present position, into action. These should link amount of their operating costs. Business planning in such into the objectives found in the relevant management plan or circumstances is particularly complicated since it must corporate strategy. It is important to check for consistency, combine a ‘good works’ element that deserves the support of and where conflicts arise, to ensure that these are resolved government and donors with a sharp business acumen that bearing in mind the key values and purposes for which the can identify enterprise opportunities and gain income. site is protected and designated, or for which the organization was established. The objectives identified in this section will need to be capable of being translated into a set of activities to be When formulating a set of objectives, it is important to ensure detailed in the action plan section. that they are SMART: At this point it is worth pointing out that activities must be • Are your objectives specific? In other words are they allocatedToolkit to specific people and must be costed and time- clear and relate to a range of activities that can be scaled. carried out? • Can the effects of these activities be measured? It would be useful to look at the Enhancing Our Heritage • Are they capable of being achieved within the plan’s , Tool 1. lifetime? • Do they relate to the resource and to the role of the organization – the vision and the mission? Appendix 10.8: • Have the objectives been given a timeframe within SEYCHELLES ISLANDS which to operate? FOUNDATION OBJECTIVES In private and profit-making companies, a key objective is to sustain a level of profit for shareholders and in order to
Business Planning for Natural World Heritage Sites 43 When producing a set of objectives, you will need to ensure that they are compatible with the aim of the your organization, and that they are also not in conflict with each other. If, for example, one of your objectives is to maximize the numbers of visitors to your site, you will need to ensure that this will not conflict with the need to conserve values. Likewise, if you have an objective to work with communities, you will need to ensure that the rigorous enforcement of regulations does not conflict with this.
Mission/Aim Compatible? Objectives ?Objective 1
?Objective 2 C O
M P A
?Objective 3 T I B ?Objective 4 L E ?
?Objective 5
Business Planning for Natural World Heritage Sites 44 A summary of the main elements of this section can be seen in the Seychelles Islands Foundation profile.
Appendix 10.9: SEYCHELLES ISLANDS FOUNDATION PROFILE
Business Planning for Natural World Heritage Sites 45 Section 3: Market Analysis
3.1: Overview have a profound effect on the ‘natural goods and services’ that an area provides. Political decisions on transport or economy can also generate instability in the market in which The purpose of this part of your plan is to analyse to whom protected areas work. you are ‘selling’ your organization and its ‘products’. This of course depends on what these products are, and section 4 It is clear that the extent to which stability can be sustained will examine this in more detail. At this stage you can safely depends on the relationship between: assume that there will be a range of markets for the different products that a protected area offers. MARKET PRODUCT
Control over these markets can vary over a period of time. Markets can be: • Stable – for instance a community that has a long relationship with a natural site and uses its resources sustainably (whether in close proximity, or ‘downstream’); or in the case of a globally iconic site, a stream of visitors that (provided all other conditions are stable) continues to visit the site. • Dynamic – for instance in the case of newly-emerging tourism opportunities in hitherto restricted regions, or new markets for natural products traditionally traded ORGANIZATION locally and informally. • Turbulent – for instance where other factors have A key purpose for business planning is to ensure that: disrupted stable relationships between providers and • The product can continue to be provided ‘consumers’ – civil war, natural disaster, terrorism, fuel • The market can continue demand the product costs and cheaper alternatives have often created • The organization can maintain its capacity to instability in tourism markets. Climate change may provide the product and to reach the market.
Business Planning for Natural World Heritage Sites 46
‘SUPPLY BASE’
ical What are your ‘products’ and An overview of the market environment can be illustrated by g the adjoining chart, which will be discussed in more detail later. Each of the components needs careful analysis, and the Where doservices? they come from? external factors are critical – changes in social and economic circumstances (such as demographic shifts, affluence, COMPETITION currency crises) and in politics (such as liberal fiscal policies, Who else provides changes in policy priorities etc.) may reinforce or threaten the YOUR these products? market for protected area products. ORGANIZATION Where else can they social and technolo , For a protected area organization, products are of three be acquired? sorts: • Natural values that the market wants to buy economic (environmental services, natural products, recreational , ‘PRODUCT DELIVERY’ experiences) Off-siteWho e.g.: ‘sells’ Media? these Tourism products? industry? • Specialist knowledge and expertise that the olitical Politicians? NGOs? organization possesses and can sell (such as guided p On-site e.g.: Information points? In- walks and treks, lectures, live interpretation, school house shops? Local shops? Educators Services? Etc.
programmes etc) local , guides? Etc. • Materials and goods related to the protected area that can be sold (publications, clothing, DVDs, posters, and associated foods etc). national
, ‘CUSTOMERS’ These will be discussed in section 4, but need to be Who are the various consumers of understood in the context of this section as well. lobal ?
g these products and services?
‘PROSPECTIVE CUSTOMERS’ Who has yet to be reached? PEST factors – Business Planning for Natural World Heritage Sites 47 with the costs of products such as foods, water, fuels and 3.2: Market Definition minerals, as well as the spread of information, awareness and choice-making. Issues that may emerge in a PEST analysis This is an important part of this section, and includes include: information on: Type of market Political (and legal) Direct and indirect taxes, corporate taxation, public spending, Market size Market segments Appendix 10.10: SIF regional, environmental, tourism and industrial policy, Market share MARKET ANALYSIS monetary policy and interest rates, changes in international Growth trade, competition law, deregulation/regulation issues, Trends bureaucracy, corruption, biodiversity and human rights issues, international obligations. This subsection describes these in the context of the above Economic chart. Business cycle, employment levels, preferences, opportunities and restrictions, inflation and exchange rates. Information for this can be gained from a wide range of Social sources, including annual reports, government data including Population growth, age structure, rural to urban migration, economic returns, academic papers, magazines and websites. social and cultural shifts, pressure groups, race and gender issues, trends in education levels etc. Technological 3.3: Analysis of Political, Economic, Improved research and development methodologies, Social and Technological (PEST) Factors increased awareness and accessibility of ‘clients’, monitoring and other equipment for PA management, communication etc. These are the external factors that may affect the way any organization operates. A PEST analysis provides a useful tool Appendix 10.11: Appendix 10.12 for working out your organization’s relationship with trends in PEST LIST AND SIF TUBBATAHA politics, population growths, movements and demands, and PEST ANALYSIS PEST ANALYSIS
Business Planning for Natural World Heritage Sites 48 PEST ANALYSIS
This will need a good brainstorming session – it is recommended that you do this in smaller groups, allocating a factor to each small group, with feedback and plenty of discussion. Some of the examples may be indirect, so be creative in thinking this through. As well as describing the implications, you might want to use symbols to show whether these are positive , neutral , or negative . Remember also, that the factors and issues are often highly interlinked, rather than separate as shown in this table. For instance, the political context may encourage a dynamic economic climate that encourages enterprise, and may promote investment in new technology . The table will help to identify the key influencing factors on your organization.
Factor Issues Implications for our organization Past Present Future Political
Economic
Social
Technological
Business Planning for Natural World Heritage Sites 49 3.4: Customer Profile DEMOGRAPHICS Age Sex It is critical to any business planning process to know who Marital status your market is, in terms of your ‘customers’. Education
In the business world these are basically the people or Profession organizations that buy a product. For example, for someone ECONOMIC FACTORS High/medium/low income who makes and sells bicycles, it is important to know that the Personal debt demand will be there. The seller would need to know that Tax burden people will want to cycle, that there are enough people who Savings tendency can cycle, that they can afford to do so (or cannot afford to CONSUMER Innovators do otherwise), that different sorts of people will want different cycling experiences, and so on. ADOPTION PROCESS Early adopters Early majority For the protected area manager, the ‘customers’ are not Late majority always (or even mainly) paying customers, and it is important Laggards to identify those who rely on the natural and cultural services PSYCHOGRAPHICS Customer demand that protected areas provide. Lifestyle However, almost all protected areas have to generate a part Motives of their income from sales, so it is also important to identify Interests those who are willing to pay for what a protected area provides and produces. For instance, in some high-profile protected areas, an important source of income is affluent, retired western Each of these customer types can be profiled. This can be tourists, who are on a package of ‘must see’ places along with achieved by reference to such criteria and attributes as: their ‘late majority’ friends. There are as likely to be as many females as males, and they may be widowed or in stable relationships.
Business Planning for Natural World Heritage Sites 50 Other areas have yet ‘to be discovered’ by this group, but Appendix 10.13: may be explored by younger, relatively wealthy, professionals SEYCHELLES ISLAND (or their adventurous offspring) in search of new experiences. FOUNDATION CUSTOMER They are likely to be active and willing to take risks. They PROFILE might be described as innovators or early adopters. Both the above groups have purchasing power, but whilst the former seeks comfort, the latter may not. It should be noted that trying to understand the motivations and tastes of these potential markets is difficult because of Other customers might include economically impoverished the distinctive cultural and economic contexts that may people who depend on forest products for subsistence or low promote certain attitudes towards host countries, and also trading livelihoods. They may lack formal education but will because fashions change over a period of time. Therefore be rich in traditional knowledge and skills. Carrying out the tourists and other consumers may not value what the host exercise in the Enhancing Our Heritage Toolkit, Tool 3, the area may see as a desirable commodity – this may include information will help identify such people for this plan. food products, items of clothing, craft ware, guided tours, publications etc. Further afield, customers might include major settlements that rely on the water sourced from protected areas, and on Support may be needed to provide the necessary insights the foods sustained by their soils and pollinated by their required to ‘understand’ the market you are trying to attract. wildlife.
The challenge for a protected area organization is to factor all these types of customers into its business planning. How much is the protected area worth?
Business Planning for Natural World Heritage Sites 51 CUSTOMER PROFILE If you organization generates its income through sales of products and/or services, this is an important exercise, and it would be perfectly reasonable to use the criteria listed here. However, if you manage an area whose income depends largely on donor or government funding, and whose function is conserving biodiversity and providing services to communities at a cost, your ‘customers’ need to be identified according to other factors and examples, which will emerge in your stakeholder analysis.
FACTOR EXAMPLES DESCRIPTION DEMOGRAPHICS Age Sex Marital status Education Profession ECONOMIC FACTORS High/medium/low income Personal debt Tax burden Savings tendency CONSUMER ADOPTION Innovators PROCESS Early adopters Early majority Late majority Laggards PSYCHOGRAPHICS Customer demand Lifestyle Motives Interests
Business Planning for Natural World Heritage Sites 52 3.5: Competition might also include economic drivers such as energy, timber The ‘competition’ needs to be viewed in two ways. Firstly, in a andHeritage minerals, Toolkit water sequestration and tourism development, strict business sense, you need to examine how other places which may have a direct impact on your area. are providing (or might be able to provide) tradable products similar to yours – are tourists visiting other areas rather than Hence, it is as critical to be as aware of the non-tradable yours? Are the products associated with your area failing to values of your area as the tradable ones, especially in the compete with similar products sold to consumers? case of world heritage. You might refer to the Enhancing our , Tool 1, for further explanation of this point. Who are these competitors? What are they doing that challenges your business development? What ‘products’ do A ‘competitor’ analysis is important, and if possible you should they offer, and what are their strengths and weaknesses? attempt to develop a profile for each competitor or competing interest. You need to identify them, but this can be a difficult task, because the ‘competition’ may be another protected area in In a strictly business sense, the following aspects are worth another country, or a tourism venture that offers similar focusing on: experiences to yours, but in a safer, cheaper or more • How do you define the competing service or product? comfortable and less crowded environment. The internet can • How does it compare to yours? be a valuable source of information in this area. • How flexible is the competitor? Can it adapt, does it specialize? Another way of considering the competition is to analyse • What are its main SWOCs? competing interests. This is critical for organizations that • Which of these can you do anything about? are using a business plan to secure or increase funding in • What do customers think of it? competition with other organizations or, in the case of • How profitably does it operate? Is it cheaper? Is it a government funding, other departmental demands. higher quality product or service? • Where is the competition located? In this case, the challenge is to show why your organization • How does it reach its customers? Does its marketing should be supported when there are demands, for instance, work? Why? for roads, schools, hospitals etc. Other competing interests
Business Planning for Natural World Heritage Sites 53 Some of these questions also relate to potentially Managing Organization, which is responsible for managing the competing interests, such as tourism developers, reef ecosystem in the middle of the Sulu Sea in the producers of branded products etc. Philippines. They also offer scuba diving and other water- based sports, so their competitors are obviously in the same In cases where you need to compete for funds, you might market. need to ask questions such as: • What is the role of the competing department or agency? • Does it have to reach set targets? • How powerful is it compared to the department that Appendix 10.14: TUBBATAHA manages your area, or the board that steers it? COMPETITOR ANALYSIS • What do the citizens think about issues such as conservation and sustainable development? • How do competing interests relate to citizens in your country? • How successful are they in communicating their interests? • What are the strategies of other protected area managers, NGOs and other bodies for securing funds?
Your PEST analysis will be useful in helping you to consider the main competition and/or competing interests.
Who is your competition, and what is their motivation? How do they compare to your organization, what are their strengths and weaknesses in relation to yours? The competitor analysis shown here is taken from the Tubbatha
Business Planning for Natural World Heritage Sites 54 3.6: Strategic Options Some important points for assessing your options: • They must be well-defined and presented simply and Having profiled your organization and considered its clearly ‘products’, its relationship with its ‘customers’, and the various • They should reflect the vision and mission identified in competing interests, you are now in a position to consider 2.2 your options. • Previous strategies need to be taken into account, and you need to show reasons for change or continuation. Remember, a critical part of your business plan is to sustain • The reasoning behind the choice of options must be your capacity to ‘guarantee the long-term integrity of transparent and logical the site and to conserve those components that • They should emerge from the company and market contribute to its outstanding universal value’, against analysis (2.1, 2.5, 2.6, 3.2, 3.3, 3.4, 3.5) - in other competing interests. words, they should be based on evidence, not opinion.
Another is to identify opportunities to generate income to You will need to consult with stakeholders when developing contribute to your work, to provide benefits to stakeholders options, perhaps in a series of workshops, or through etc. questionnaires and interviews.
Business planning in the context of protected area As part of the process you will need to consider the criteria by management throws up some odd features: which you will collectively make your decisions. These might • The motivation is rarely simply to generate profits include feasibility, risk, cost, capacity, time taken to adopt, • It is never at the expense of the values that justify etc. It would be helpful to develop a matrix to help you. designation of your area • Identifying the competition may provide an opportunity Appendix 10.15: to form partnerships rather competing. TUBBATAHA STRATEGIC OPTIONS Nonetheless, there is nothing ‘soft’ about business planning for protected area management – it is a tough business
Business Planning for Natural World Heritage Sites 55
CONSIDERING YOUR STRATEGIC OPTIONS Any strategic challenge may have a number of possible options. It is important that in developing this chart you discuss the issues widely with the relevant decision-makers, and ensure that there is no conflict between the options you adopt. For example, if one of your strategic challenges is to increase income, you will need to ensure that the options you adopt do not conflict with the strategic challenge of ensuring the long-term viability of a site’s natural values, and can therefore allow for income generation activities.
Strategic challenge Strategic options Assumptions, facts, and What possible obstacles What triggers might Preferred option(s) values that support this are there to encourage re-evaluation proposed strategy? implementing this of this strategy? strategy? a. 1 b. a. 2 b. a. 3 b. a. 4 b.
Business Planning for Natural World Heritage Sites 56 Section 4: Marketing Plan
The marketing plan is a key focused element of any business an increased cost. Whatever these are, they must, as we saw plan that aims to promote products, and forms the output of in subsection 2.6, be SMART. the analysis in section 3. It aims to: • Present detailed information on the customers you aim If an objective is to increase sales, what percentage increase to target (including all those who rely on your do you aim to achieve? Can it be achieved? If increased sales protected area goods and services) mean increased costs, can they be reconciled? If the objective • Describe in detail the products you are providing is to reach new customers, how many do you expect to reach, • Describe how you will reach these customers and what will it cost to reach them? (communication is likely to be a key tool) • Describe any promotional programmes you will Remember also that marketing objectives should be in line undertake, and the costs associated with them with overall site management objectives. If their purpose is to • Predict your financial state and organizational capacity. conserve biodiversity, then marketing objectives will have to show that any trading activities do not conflict with this, but actually support it. 4.1: Marketing Strategy
You have already profiled your customers above (3.4), but in your strategy you have to show that you understand these You will need to agree what your marketing objectives will be. questions: In pure business terms, these might include increasing the • What are the needs addressed by the products sales of goods overall, or expanding sales into new markets. associated with your protected area? • What are the products that serve those needs? For protected area managers, an objective set by their • Who ‘buys’ those products? department might be the generation of 20% of their running • Why do they ‘buy’ them? costs by charging for park services, or by increasing gate • Where do they ‘buy’ them and how? takings. This might require them to make a small charge for education programmes, or to increase charges for guided People are both fickle and conservative. It can be difficult in walks or treks, or provide refreshments or accommodation at some cases to persuade them to change the purchasing
Business Planning for Natural World Heritage Sites 57 habits of a lifetime. On the other hand, when it comes to Basically, it begins by referring to the factors that motivate tourism preferences, they can be extremely capricious, and the provision of products, ensuring quality and affordability, may make choices for the most spurious personal reasons. and the methods of bringing them to the attention of people. Understanding their behaviour can be difficult, but having an These include the external factors described above. insight is crucial to successful marketing. The following model is helpful: However, the extent to which one product is chosen over another depends on the characteristics of the person, group (After Porter 1992, Kotler 2000, Engel 1995, Sheth or institution. This includes their ‘culture’ and the social 1999) context in which they live, the lifestyle choices they make as a result of this, and their life needs (including water, food, shelter and spiritual refreshment).
MARKET STIMULI It has been said that the decision to purchase often depends Product, price, place, promotion on the psychological need to address those needs – which is OTHER STIMULI why ‘problem recognition’ is a feature – this may be Political, economic, social, technological subconscious, or may be stimulated by advertising. The model asserts that the process of buying can be described as recognizing this need or desire, finding out about products, BUYER’S CHARACTERISTICS working towards a choice, making the decision, and reflecting Cultural, social, personal, psychological (again subconsciously in some cases) on the efficacy of the purchase. The basis of decisions has to do with timing, BUYER’S DECISION PROCESS accessibility, cost, quality, vendor support, etc. Problem recognition > information search > evolution > decision > post-purchase behaviour The extent to which a purchaser continues to buy depends on whether they believe that the purchase was worth it, in other words, whether it has satisfied their needs and reinforced BUYER’S DECISIONS their beliefs. Product choice, brand choice, retailer choice, purchase timing, purchase amount
Business Planning for Natural World Heritage Sites 58 In order to operate efficiently and effectively, an organization Having understood these things and considered the different needs to group its ‘customers’ into clusters or segments that parts or segments, it is important to think about how you are share similar profiles. These segments are likely to exercise going to reach them. the same purchasing decisions. They may make similar demands (for example, in the context of ecotourism, food, For instance, if you have identified young, active, affluent accommodation and experiences). people from Western countries as a tourist opportunity, you will need to consider which media they use – probably the The task for the business planner is to ‘segment’ its market, internet, adventure magazines, and certain TV programmes – to identify the segments that it is likely to attract, and to and decide whether you can then afford the costs of reaching ‘differentiate’ the range of products to match the demands of them via these media. these different segments. On the other hand, if one of your segments is relatively local, It is possible to segment the customers for park goods and you may want to consider other outlets, such as local radio, services in a number of ways. The following diagram might be newspapers, TV and high-quality leaflets. a useful way of thinking about this if you plan to ‘sell’ direct: If part of your business plan entails the use of natural Demographic products, you will need to consider whether your market Age, gender, income, social consists of various companies who will add value to the class, gender, marital status product and sell it on, or whether you want to reach purchasers of your product directly, or work through Geographic Behavioural Dispersal, Knowledge, distributors. The relationship between each of these three is different, and you will need to consider the costs and benefit clustering, Market purchasing mobility, patterns, associated with each of them. Segments urban/rural loyalty relationships
Appendix 10.16: Psychographic SEYCHELLES ISLAND FOUNDATION Lifestyle, attitudes, values MARKET SEGMENTS
Business Planning for Natural World Heritage Sites 59 In subsection 3.5 we referred to the competition, which in the Perceived Attractiveness case of protected areas can refer to competing interests, and also to other providers who might offer something similar. For High example, a number of small enterprises associated with protected areas in the South Pacific offer products based on My product coconut oils. Throughout Africa and Asia, others might offer spices or exotic foods, carved products, sightseeing, and wildlife or adventure experiences.
An important factor in developing a business plan is to consider your position in relation to similar organizations. This will help you to think about the way potential customers might view the ‘product’ on offer, work on your strengths and weaknesses, and strive to improve. It also helps you to think Perceived cost about the way you are communicating – does your message reinforce people’s perceptions, or do you need to change either the message or the perceptions? Low High
This needs some research – for example, you should ask visitors and other users of your site what they think about it, how they discovered it, etc.
You might want to consider your position in terms of this Low diagram. It is based on any two relevant criteria – in this case ‘attractiveness’ against ‘cost’ (these might refer to a food Appendix 10.17: Appendix 10.18: TUBBATAHA SIF product associated with a protected area). Others might be MARKET MARKET ‘adventurous’ and ‘safe’, or ‘remote’ and ‘accessible’, which POSITION POSITION might refer to tourism experiences.
Business Planning for Natural World Heritage Sites 60 4.2: Product The diagram concerns the production of herb-based soaps by an NGO associated with a protected area. It sells its soaps in The business sector often refers to a ‘marketing mix’. This the city, and the main purchasers are visiting tourists. A simply consists of balancing four key elements. market survey has discovered that its product is seen as attractive (though not quite as much as two of its The first of the four elements is to clearly understand the competitors) and not expensive (only one competitor) is nature of what it is you are ‘selling’. This is critical. It may cheaper. This raises a number of questions: seem simple, but in fact any product has intangible features, • Should the producer increase the price of its soaps? especially feelings. • Can it reduce attractiveness (and therefore some costs) to reflect its relative cheapness? People choose products because they have feelings that the • Is it reaching the ‘right’ client? products reinforce. For example, a tourism experience is • Should it use its advertising more assertively to reflect exactly that – people feel spiritually refreshed, excited, this perception of high quality and low cost? perhaps slightly frightened. They have a sense of achievement, a feeling that they have been somewhere These are the sorts of questions that a marketing strategy special and seen something rare. When they buy mementoes should aim to answer. You should also look at the SIF and they are not simply buying products, they will be making a Tubbatha examples. statement – ‘I have been there and experienced this’.
It is clear that marketing is a critical tool in achieving the aims The same applies to the private sector – when people buy of any organization. For the private sector it is the means of cars they are not simply buying a moving heap of metal and reaching the optimal market at least cost in order to maximize rubber – they are buying speed, luxury, comfort, status, profit. For protected area organizations, it is the means to reliability and fuel economy. The product thus reinforces the ensure that their profiles are maintained, as well as reaching way they feel about things. customers for their products in order to secure funds for management purposes. In this subsection, the planner will list and describe all the products – tangible and intangible – that are provided. This should include the range of services under the organization’s stewardship.
Business Planning for Natural World Heritage Sites 61 4.3: Pricing
Another key aspect of the marketing mix is the price that is • Mark up/margin attached to the product. Any profit is a percentage of the cost price or the sale price. In the former case, it is known as the ‘mark-up’ If the sale of goods is a part of protected area activity, it – branded outdoor clothing often has a significant perhaps goes without saying that price is of central mark-up. A profit on sales is the ‘margin’. In either importance. The price: case it is the difference between your costs and your • Reinforces your image. (high quality, special place, returns. natural product, hand-produced, benefits rural • Break even communities, caring organization, protects nature, etc). The break-even point is where your fixed and variable People will pay more for special products ‘that can only costs are equal to your sales. Remember that be bought at the park’. production costs increase with output and with quality, • Affects demand. The higher the price, the narrower and that these may overtake your sales if you cannot the demand – unless an experience or product is so sell enough. You can base a profit on a percentage ‘must have’ that many people will pay high prices in above the break-even point. large numbers. This is an approach often used by the • Perception fashion industry – the ‘must have’ label being a prime This is simply a price based on what you think your example. customers will pay. Interestingly this is a technique • Relates to your market segment. If your customers frequently used in evaluating the costs and benefits of are affluent and value your product or services they the environment – how much is anyone willing to pay will pay a premium. If they are relatively poor, they will to save a forest for instance? Of course this depends not pay for a highly-priced quality product but will seek on the customer’s relative wealth, but the contribution cheaper alternatives in terms of travel, that people make to good causes and to NGOs is a accommodation, food and experiences. Some airline form of ‘willingness to pay’ on the basis of perception. and holiday companies promote cheap experiences in For the protected area manager, this is a useful bulk, and compete fiercely on price. approach in negotiating with funding bodies and other departments (but see below 4.6). There are a number of ways of looking at pricing:
Business Planning for Natural World Heritage Sites 62
4.4: Place (Distribution) 4.5: Promotion
This element is about getting your product to your customers This is about the methods for reaching customers and alerting (or them to it). them to the availability and desirability or importance of the product. There are a number of factors that influence ‘place’, including: • Customer profile – what do they do, read, watch, You will need to consider whom you are attempting to reach. think? For the protected area organization this may be wide-ranging, • Geography – where do they live relative to the depending on what you are ‘selling’. As a straight business ‘product’? Are they widely dispersed or concentrated? process, this may include other outlets such as travel agents, Local or far away? Can they be reached easily? guiding/trekking companies, educational organizations or • Product type – is this a ‘one-off’ experience for some distributors of natural products grown and processed in its customers, a ‘return again’ experience for others? Is it area. a service for some? Can they take it away? Can it be sent? Other ‘customers’ might include government agencies, • Buying behaviour – where do customers go to buy? politicians, international NGOs and community leaders and The internet? Travel agencies? Importers of exotic groups. products? At the location they visit? • Seasonal variations – is your product subject to Promotion is seen as a cost to the organization, but is an times when it is best to ‘sell’, for example, at times of important element, as it may increase sales on the one hand, migration, nesting, breeding, etc? Is your product and secure future funding on the other. weather dependent, so that roads and flights become impossible? Is your production based on flowering or You will therefore need to carefully consider how to promote seeding periods? the interests (as well as the products) of your organization – • Funds – what is the most efficient of using the funds different ‘customers’ will need different promotional methods. you have for marketing and distribution purposes? Can you use existing channels used by others?
Business Planning for Natural World Heritage Sites 63 The role of the media is central to this. What is the image 4.6: Market Forecasting that you wish to convey - caring for nature; dependable, committed, professional, good value organization; once-in-a- lifetime tourism experiences; natural products; supporting It is crucial to forecast possible trends that might affect your wildlife and people? organization’s future viability. This may relate to the income generated from sales (which will enable you to reinvest in What is your brand? Many companies and organizations try to product development and resourcing your conservation distil their values and mission into a single image – a ‘logo’. efforts), or to funding over the forthcoming years. Some are known globally and have stood the test of time, • Define what it is you need to forecast even though they may not literally illustrate their product. • Define the monitoring and review intervals, and the Others reflect their ‘product’ strongly and simply, either horizon (which should normally be the lifetime of the through associated colour or through simple imagery. plan) • Ensure that you have sufficient time, human resources and budget to carry out the forecast • Decide on the technique you will use to forecast • Gather the necessary data • Consider your assumptions • Identify the criteria and indicators that will tell you how your forecast is being met • Develop and present your forecast • Remember that this (like any planning process) is iterative – new information will require you to revisit your previous assumptions and figures • Use graphics as well as descriptions.
An important part of forecasting is to try to anticipate
demand. This is the readiness of people to buy a product,
which is not the same as a willingness to pay. People may
Business Planning for Natural World Heritage Sites 64 have the means to buy a product, but may not be willing, or Remember that there are many sources of market information may not be aware. At the same time people may be willing to available, including your stakeholders, the park staff pay but may not have the means to do so. It is only when themselves, volunteers, tourist operators, visitors and users, people are willing and able to buy a product that the demand hotel managers, local residents, and the various agencies and is genuinely there. government departments that relate to your site.
Finally, it is important to state clearly the assumptions on It is important to know why people come to your site, what which you are basing your forecast, and their robustness or they particularly like or dislike about it, improvements that sensitivity. You will be confident about some of these they think would make them more likely to re-visit or use your assumptions, and less confident about others, so it is facilities more often, and how they can support you. important to distinguish between them.
Appendix 10.19: SIF MARKET FORECAST WORKSHEET
Appendix 10.20 MARKETING BUDGET
Appendix 10.21 SEYCHELLES ISLANDS FOUNDATION MARKETING PLAN
Business Planning for Natural World Heritage Sites 65 Section 5: Operational Plan
5.1: Overview 5.2: Procurement
The operational plan includes day-to-day processes; it is Procurement is the system by which you manage suppliers, business planning and management in action. It is not an purchase, inventories, transportation, and the monitoring of integral part of the business plan, but it demonstrates that goods and services received. the organization operates to high standards, and gives your organization confidence that it actually has systems (not only In all cases, it is important to delegate clear procurement policies) in place. It is important to cross-reference the responsibilities, such as: sections in the business plan that link to specific operational • Who will manage the procurement process? documents, including those that implement the site’s • Who will receive and inspect any goods received both at management plan. HQ and at outlying sites? • Who will manage the organization’s inventory? It is typically a high-level document that incorporates other • Who will monitor any tendering processes? documents and systems, such as environmental management and emergency response systems, preventative maintenance Organizations rely heavily on suppliers. However, high the and health and safety procedures and procurement systems standards of an organization, poor supplier relationships will and standards. negatively affect its effectiveness and reliability. This is particularly important, for instance in the case of equipment You should note that not all the sections apply to all used for adventurous activities, or for providing organizations, therefore you should think critically about accommodation or refreshments. which ones are relevant, and avoid using time unproductively on documents that may not apply. Organizations need to think strategically and tactically. In the first case, they need to consider the supply base in general – volume and type, whilst in the latter case, they need to relate to specific suppliers to meet their immediate requirements –
Business Planning for Natural World Heritage Sites 66 suppliers for protected areas can include contractors carrying Any procurement policy should include these issues. out major infrastructure works, research and consultancy, The reading on purchasing policies provides useful printing, IT systems, and so on. information on the mechanics of purchasing processes, but says nothing about key principles such as human rights and Generally, the rule is to reduce the supplier base to the environmental standards. minimum necessary to operate effectively. The reading on procurement Appendix 10.22 standards provides an example Relationships with suppliers can be basic, with a minimum of PURCHASING that asserts the application of POLICIES concern, provided the supply is a basic commodity such as such standards. office materials, which can be ordered in regular quantities, cheaply and on time. Appendix 10.23 PROCUREMENT STANDARDS Relationships can also be complex and may require extensive discussions for clarity, regular briefings and thorough review processes - and are likely to be one-off scenarios. These can, for example, include research consultancies, or specific It would be useful to show how these standards will be services at a specific point, such as the design of a visitor applied by ensuring that organizational or departmental centre in a sensitive area. standing orders include references to these standards, and by developing a strategy that promotes them. A key issue is environmental and other standards (such as fair trade, human rights and health and safety). In Europe and the United States, protected area management Increasingly it has become important to recognize that as works within the public sector, therefore individual managers leaders in conservation, World Heritage site and other must operate within a regulatory framework that is defined by managers should try to ensure that the organizations they government. In Europe, procurement is, furthermore, deal with should have policies for environmental management regulated by European Union regulations, to which all public systems of their own. For example, in some countries, bodies must adhere. infrastructure contractors are required to keep to ISO 14001 standards to work in protected areas and other sensitive sites.
Business Planning for Natural World Heritage Sites 67 The following three readings show how strategies, procedures • Process for selection of suitable suppliers for specific and standing orders include environmental human rights requirements standards, and how they relate to each other. The first of • Preparation and issue of enquiries these is a broad procurement strategy written for a UK • Administration of bids protected area’s management; the second relates to standard • Commercial and technical evaluation orders that define the contractual obligations for another UK • Environmental and human rights standards protected area, whilst the third summarizes purchasing • Process for negotiating with suppliers procedural thresholds in two regions. • Preparation and issue of purchase orders • Negotiation of variations and claims • Monitoring and reporting of purchasing activities Appendix 10:24 Appendix 10.25 • Concluding orders. PROCUREMENT PROCUREMENT STRATEGY STANDING Some organizations may be carrying a significant amount of ORDERS stock, which might include anything from office furniture and equipment to educational and promotional materials, vehicles and safety equipment. Tradable stock is unlikely to form a Appendix 10.26 significant part of a protected area’s stock. STANDARD PURCHASING It is important to have in place an inventory system for PROCEDURE managing the flow and status of all your stock. This should include a procedure for ensuring that new stock items are subject to proper scrutiny and authorization, and that Internally, it is also important for the sake of efficiency and determines when and in what quantities certain items need to transparency to develop a clear system for purchasing be renewed or replenished. supplies and services. Many protected area organizations rely heavily on systems of This part of the operational plan should include references to: transport for moving people and equipment, for carrying out maintenance, and for monitoring wildlife. These may include
Business Planning for Natural World Heritage Sites 68 staff vehicles, earth-moving equipment, boats and light • Single point responsibility for managing each contract (and aircraft. contractor/partner) • Awarding process based on the lowest ‘lifetime’ cost to the There are two issues that require a clear policy: organization, taking into account best value and other • The need to minimize costs relevant criteria • The need to ensure that the use of vehicles is both • Qualification and policies (environmental, human rights necessary and also the most efficient mode. and health and safety) of contractors, suppliers and tenderers This includes, for example, determining whether it is more • Governing law for (international) contracts, and the need efficient and better value to purchase vehicles in-house or to for legal advice for any deviation from policy lease them; whether to have an in-house maintenance team • Types of contract to be preferred for given circumstances or to contract that service out, and which vehicles to buy or • Facilities and services that the contractor is expected to lease for what purposes. provide • Incentives/bonuses system for encouragement/reward of It also includes the need to keep down costs by minimizing contractors (rather than penalties/guarantees to prevent use for necessary purposes, which should be logged, and by under-performance). adopting alternative modes if this is both efficient and cost effective. The type of contract depends on the service or goods you wish to procure. For instance, you may wish to retain the 5.3: Contractual Agreements services of a university department or an NGO for monitoring and reporting on the state of biodiversity, or you may require cleaning or maintenance services at your properties – in other In the interests of transparency, it is important to signal your words, regular intervention by people to maintain standards, contractual arrangements clearly both internally and to whether to keep places (or say equipment) running, or to external contractors. A contracting policy should address the maintain a systematic flow of data. following matters: • Nature and extent of to be carried out On the other hand, you may want a one-off piece of work by • Role and responsibilities of Tender Board a consultant, such as improving a system, raising awareness
Business Planning for Natural World Heritage Sites 69 among staff and stakeholders, or carrying out some kind of • Tenders are genuinely competitive baseline work. • That reasons for not accepting the lowest or any bid are stated explicitly Alternatively, you may wish to maintain a contract with a • That contractors invited to tender have the necessary specialist to provide technical advice when required, but not qualifications and operate to appropriate standards specified. Contracts may also be for the procurement of • That there is a fair and impartial procedure for fielding equipment on a one-off basis, or for materials on a regular enquiries, providing discrete information to contractors basis, or as required. who have not succeeded, and responding to complaints • That contracts are properly supervised, monitored and These require different ways of presenting contracts, some of evaluated by the relevant person. which may be technical, and might require specialist support. What is important is to ensure that contracts are appropriate 5.4: Sustainable Financing to their purpose to ensure a good quality of service at reasonable cost to the organization. Generating sustainable funds is often a central part of Normal practice is to provide a standard set of terms and protected area management, whether for projects, or for core conditions separately from the specific contract being funding. Whether the management is an authority within a tendered. government department or an NGO, the process of bidding for funds is effectively the same activity. In some cases it would be acceptable to use a standardized contract – these are for routine, minor operations or services. Protected area managers bidding against other departmental The conditions for using standards contracts need to be or government interests face the same challenge as NGOs specified. and others bidding for funds from trusts and donor agencies, so the principles are the same. Contracts that are subject to tender should be open to scrutiny. A Tender Committee should ensure that the agreed Some organizations undertake activities such as appeals to tendering processes are adhered to, including: raise funds for species or species conservation, or to build education or other centres. Whether applying for funds from
Business Planning for Natural World Heritage Sites 70 donor agencies, or running appeals, fundraising is extremely • How will you account for it? time-consuming, and many efforts may not be successful. • What do you hope to achieve and how will this address This represents a double blow, since time lost on unsuccessful their objectives as well as yours? endeavours is a time cost to the organization. • How will you measure success? • How do they know they can trust you to manage it? If generating funds is a significant activity, it is important to plan carefully, and to have a strategy for this within the What will you actually do with the funds? Donors, business plan. It goes without saying that a well-thought out governments and the public will need to be satisfied that you business plan is a crucial tool for sustainable financing. are worth the investment.
You will need to ask yourself: 5.5: Health and Safety Issues • Do you have to make bids to government? Do you have to justify your costs, and do you have to fight your corner for a finite budget? Every organization has a legal duty to ensure the health and • If you rely entirely on donations, how much time is spent safety of its employees and others who visit its sites, and to on fundraising as against conservation or other work? protect the environment, and there should be a corporate • How much time is available to carry out fundraising policy stating the way in which it will manage these matters. activities? • What resources are available to you? Such a policy should set out the organization’s legal duties • Do you have to bid in your own right, or can you and its commitment to ensure safety and to operate to high collaborate with other organizations in a joint bid? environmental standards. • Is it worth the cost of calling in specialist advice? • What accounting systems do you have in place? It should set out the organization’s safety and environmental management systems, explaining the responsibilities of Donors (including government) will want to know: specific staff in regard to these, and the lines of • How much is needed? communication and procedures for dealing with and reporting • Why is it needed? accidents and negative environmental impacts as a result of • How will it be used? operations.
Business Planning for Natural World Heritage Sites 71 An integral part of developing such systems is a risk In the UK, the Health and Safety Executive offers advice on assessment, in other words anticipating what might happen workplace safety issues. Tir Coed is a small woodland under certain conditions, the extent of the risk, and what will conservation NGO in Wales, UK. be done to minimize that risk. Appendix 10.27: Appendix 10.28: In some cases, this may require an assessment of all the HSE TIR COED structures on a site that the public visits, or the conditions FOR SMALL HEALTH AND BUSINESSES SAFETY POLICY underfoot. It may need an assessment of the conditions under which field staff operate. Responses should include repairs, warning notices and advice, redirecting visitors away from risky areas, ensuring that they are accompanied at all 5.6: Preventative Maintenance times, ensuring that first aid kits or protective clothing are worn, etc. The best way to avoid mechanical breakdown is to apply a This obviously comes at a cost, but it is a crucial element of rigorous system of preventative maintenance. All too often, good management practice, ensures efficient working by large amounts of money are spent on vehicles and equipment avoiding accidents, and also avoids the potential for litigation. with little consideration given to managing breakdowns, or to In many circumstances, such assessments are a legal investing in replacement parts. requirement. However, this is often a minimum requirement, and good practice should also provide guidelines, for There is nothing worse than a vehicle breakdown in hostile example, for working alone in demanding areas such as country, an ineffective radio at a time of emergency, or forests, mountains, rivers or other areas exposed to the outdated firearms in a situation where enforcement rangers weather; for working at height (such as trees) or on high and have to confront well-armed and violent poaching parties. unstable structures (in the case of cultural edifices); for working with electrics and machinery; and for working with Ineffective and outdated equipment places a large burden on visitors. protected area organizations and presents a danger to its users, so it is critical to ensure that it is maintained to the standards and at the frequency recommended by the
Business Planning for Natural World Heritage Sites 72 manufacturer – this is as much a health, safety and environmental issue as it is a business one.
All equipment should carry a maintenance log that can be accessed both by the user and by the persons managing records.
Business Planning for Natural World Heritage Sites 73 Section 6: Human Resources
6.1. Overview
ELEMENTS OF HUMAN RESOURCE AUDIT The role of the Human Resources section is twofold: - Recruitment - Staff size • It describes the current state of the human resources in - Skill set - Leaders the organization - Structures - Labour relations • It identifies gaps in capacity, linked to the strategies - Salaries - Training identified in the business plan, and how the organization - Staff Turnover plans to address these gaps.
An organization’s human capital is probably its best resource, especially when that capital contains the wealth of knowledge, skills and experience retained by its people.
Supporting and nurturing their development should be seen as an investment in them and in the organization itself. ORGANIZATIONAL IMPACT This section will include issues such as organizational structure (including the organogram referred to at the - Leadership - Know-how beginning of this toolkit); current staff profile, future - Productivity - Dependency organizational needs and gaps, training needs and - Generation of new ideas - Culture performance appraisal. - Organizational change
This diagram demonstrates some of these elements and their impacts:
Business Planning for Natural World Heritage Sites 74 6.2. Organizational Structure
BASIC INFORMATION
Understanding the way in which the organization is built and • Number of employees managed will help to identify which of its parts does what, • Brief description of main divisions/ departments and who is responsible and answerable to whom. within the organization
It also provides a rapid insight into the ‘metrics’ (numbers, functions, roles) of the organization. SUPPLEMENTARY INFORMATION
If your organization is planning to seek funds in ways that will • Detailed description of Steering or Advisory expand (perhaps temporarily) its numbers, it is important to Board/Committee present a proposed structure for the management of people • Detailed description of the Management Team in a proposed project. In the case of an organization seeking (executive) funds to continue and improve its operations, it is important • Detailed description of committee roles and to illustrate gaps in capacity, and how any increases in funds functions will address those gaps. • Detailed description of other key roles within the organization As we saw in the first section, an organogram is a key tool in • Information on levels of authority with regard to summarizing structure. This should be accompanied by a funding/costs description of the organization and roles, functions and costs • Detailed departmental organograms of its staff. • Information on staff by department
The following list summarizes what might be included in such a description:
Business Planning for Natural World Heritage Sites 75 6.3. Staff Profile 6.4. Gap/Organizational Needs Analysis
Business plans usually contain a summary description of an Ensuring that an organization will satisfy its needs (in terms of organization’s skill set. Its importance lies in helping to staff capacities) is a dynamic process, constantly changing analyse the specific skills needed to achieve the objectives. and creating new challenges. This can best be described as an organizational needs analysis. It is useful to make an explicit statement about the organizational change that is required and the processes Analysing the skill set of an organization requires two that are needed for that change to happen. This should be elements: produced according to key criteria (linked to the strategy) such as the need to improve communications, to develop an • A ‘position-oriented’ element, describing what it is that a environmental ethic, to move into new spheres of position should deliver in terms of strategies and competence, to work more collaboratively, etc. objectives • An ‘employee-oriented’ element, focusing on the skills that It is important to analyse gaps both at individual staff levels the employee possesses. and at the organizational level (in other words, a gap analysis should be done not just on an individual by individual basis, Analysing the gap between the position’s requirements and but across an entire group of employees or department, for the skills will raise questions about the capacity of the example, what are the collective skills required across the organization to operate effectively. Park Rangers?). Remember that training individuals should have a knock-on effect throughout the organization, so the It perhaps goes without saying impact of training (and of recruiting new staff) should AAppendix that as well as an organogram, permeate across the organization. any proposed project for which a 10.29 business plan is being written SIF Gap analysis helps to address challenges, by comparing should also include detailed job ORGANOGRAM current and future states and identifying skills gaps. The descriptions and roles for staff to response (assuming that the strategy and objectives are be recruited to deliver. achievable) is to recruit new staff and/or train existing members.
Business Planning for Natural World Heritage Sites 76 This should be based on an agreed procedure that explicitly attributes that are required. The accompanying gap analysis states the existing and the required skills of each member has the effect of weighting each of the skills (so as to focus of staff, and carrying out an appraisal of the gap, in order to on the critical skills first), provides an actual performance improve competence and effectiveness. score, and charts the gap between existing and desired skills.
For example, a mechanic may have the skills to repair and maintain the existing range of equipment, but may need to Appendix 10.30 SIF MECHANICS expand those skills, to improve record keeping, or to develop GAP ANALYSIS better communication skills in order to train young recruits, Appendix 10.32 etc. The existing and required skills should be discussed and UWA RANGER negotiated between the staff and managers. Appendix 10.31 GAP ANALYSIS UWA RANGER Since it would not be possible (and may not be desirable) to ROLE try to address all requirements, they should be prioritized and DESCRIPTION assigned importance. This might be based on a number of factors, such as long-term viability of the job, expense of 6.5. Training training, urgency, speed with which skills can be acquired, etc. Organizations should have a policy on training, and should The existing and desired skill set might then be given a score include an element of funding for that purpose. Business according to confidence, expertise, knowledge, etc. Such a plans should make reference to this policy and should template can be used to update the skill set of staff on a summarize the organization’s position on training. regular basis, to draw up training schedules, and to identify gaps that may require additional recruitment, merging of It should be remembered that training can be carried out in a posts, etc. number of ways, as well as in formal training courses. Shadowing, reading up to date references, in-house In our other example from Uganda, the ranger’s role presentations and discussion groups are all useful and should description identifies the important responsibilities and be recognized.
Business Planning for Natural World Heritage Sites 77 Training at a personal level has three aspects: it builds knowledge, improves skills and develops attitude. Training programmes should demonstrate how they will do these things, and how in achieving them, an individual will benefit professionally and will benefit the organization.
Such training should clearly address the gaps identified. It is important that the person responsible for human resources engages actively in any training programme, by ensuring that trainees are supported before and after any events, and be carrying out a pre- and post-event appraisal.
Business Planning for Natural World Heritage Sites 78 Section 7: Risk Analysis
Internal risks can include: 7.1. Identifying and Evaluating Risks • Unanticipated losses of key staff, and their skills • Collapse of structures leading to multiple deaths or injuries • Injuries or deaths arising out of everyday work accidents In section 5.5 we referred to risk analysis associated with • Corruption or incompetence health and safety. It is worth saying that risk is a fact of life, • Loss of critical supplies or services such as water, and that the unforeseen will sooner or later happen. electricity, etc • Loss of key species or habitats associated with a site. The purpose of this section is to demonstrate to the reader that the organization has carefully considered the risks, and These incidents too can have significant consequences for has taken steps to address them as far as it reasonably can. management. All have occurred, sometimes with alarming frequency. First, it must understand the nature of these risks. These can include ‘macro’ issues such as: Other risks may be associated with project management, and • Natural disasters contractors (see the section on procurement) should be asked • Civil conflicts about the risks attached to the delivery of their proposal. The • Isolated cases of robbery, rape or murder same applies in the case of donor agencies and other donors • Changes in government leading to changes in land – protected area organizations are asked to define any risks use/conservation policies to the success of a project for which they are seeking funds. • Privatization of publicly-owned or managed enterprises, or nationalization of private ones It is critical to work through a systematic process of risk • Global policies that influence purchasing/holiday choices. identification, analysis, management and communication, which should involve all members of staff, and should These risks have an external, often international dimension encompass external and internal risks. that can be devastating to the interests of organizations attempting to build enterprises.
Business Planning for Natural World Heritage Sites 79 Be aware that it is not possible to consider every possible ASSET RISK contingency. It is important to weigh likelihood, and to focus Migration/break-up of habituated gorilla groups on the risks most likely to be those that will prevent the 50% Poaching and illegal trade organization from reaching its goals. The assessment should global Physical threats to PA (fire, over-development) work to a reasonable horizon – normally the plan lifetime - gorilla Disease outbreak between 3-5 years. The risk should reflect the likelihood that population Reduction in tourism due to global or political a damaging event will occur within that period. in World threats • Identify and describe the risk Heritage Poor roads to parks • Agree on its implications in terms of a range of criteria – site Perception of poor security due to foreign the environment, people, reputations, performance, embassy travel advice finance, etc We now need to evaluate how vulnerable the asset is to each • Evaluate the scale and scope of each risk – some risks of the threats. We need to define this in two ways: may impact on a wider range of interests than others. • How likely is each of them to happen? Some might be unlikely to occur, but could be devastating • How damaging might each be? if they do occur, whilst others might be more likely to occur but might be less damaging The result in the case of the gorilla asset might be: • Use a ‘what if…?’ approach to determine what might occur ASSET RISK DESCRIPTION LEVEL in a range of scenarios, and what the response should be. Migration/break-up of habituated 1 L H 50% global gorilla groups In carrying out a risk analysis, you should begin by reviewing gorilla 2 Poaching and illegal trade H H your earlier SWOC, as this enables consideration of population Physical threats to PA (fire, over- organizational assets that might be damaged or lost. The 3 M H in World development) ‘challenges’ or ‘threats’ element represents some of the risks. Heritage 4 Disease outbreak L H In the Uganda example, for example, the gorilla population is site Reduction in tourism due to a major asset. The identified threats present a risk. It is 5 L M global or political threats important to describe the risk – is it environmental, does it 6 Poor roads to parks M M impact on the human or material assets, is it financial? You Perception of poor security due to need to be both clear and concise. 7 H M foreign embassy travel advice
Business Planning for Natural World Heritage Sites 80
Under the ‘level’ heading, the left-hand column represents the Appendix 10.33: Appendix 10.34/35 likelihood of the risk occurring. The right hand one the TUBBATAHA CONTINGENCY impact of the event. It can be scored L (low), M (medium) or RISK PLANNING H (high), or it might be possible to assign percentages or a RESPONSE TEMPLATES score out of ten. 1 and 2
This exercise should be carried out across the organization’s Some risk management is met through regulatory compliance. operations, and should explore beyond the SWOC analysis. There are a number of ways to tabulate the results, depending on the scale of organization and the scope of its risks. What is important is that this is meaningful to the person reading it. It might be possible, for instance, to aggregate the table above in order to arrive at an overall score or colour, but this then needs to be capable of being disaggregated back to reveal the detail.
The next stage is to develop a risk management programme, which should be commensurate with the risk – overcompensating can be as problematic as failing to acknowledge the risk. It should be reviewed annually.
Risk management plans should identify the channels through which decisions are made about the level of risk avoidance and response.
Look at the following examples, which show how the Seychelles Islands Foundation has approached this exercise.
Business Planning for Natural World Heritage Sites 81 EVALUATING RISK Using this table, decide on Key asset, strength or operation: a key strength or asset Probability of Risk impact linked to your organization. Identified Risk occurrence (please (please circle) Identify the range of risks circle) to which it might be 1 Low Medium High Low Medium High vulnerable, and describe 2 Low Medium High Low Medium High them in the first column. 3 Low Medium High Low Medium High 4 Low Medium High Low Medium High Decide how likely each risk 5 Low Medium High Low Medium High is to occur, and put a circle 6 Low Medium High Low Medium High around the appropriate 7 Low Medium High Low Medium High box. Repeat the exercise 8 Low Medium High Low Medium High for the potential impact of 9 Low Medium High Low Medium High the risk.
You might present your results h g 1 4 3 2 by plotting them on a graph. In the above example, the graph might look like this:
CT Hi 6 Another way of showing has been 5 7 presented by the Seychelles Islands Foundation. Appendix 10.36 Low IMPA
SIF RISK KK EVALUATION Low LIKELIHOOD High
Business Planning for Natural World Heritage Sites 82 Section 8: Financial Plan
The level of complexity and detail of a financial plan depends 8.1. Overview on the purpose of the business plan. Is its purpose:
The Financial Plan section will help the reader of the Business • Requesting funds from a donor for a new project? Plan understand the organization or site’s financial situation • Requesting money for particular elements of the and funding requirements. It shows the financial impact of organization’s work, such as new equipment, strategies and activities identified earlier in the plan that are accommodation, visitor services, conservation work or key to achieving its conservation objectives. research? • Presenting a total picture of the organization’s role, For a potential donor (whether it is your government, an operations and capacity in order to secure and increase investor, or a donor agency), this is a particularly important core and project funding from the Government or section, since it provides the financial focus of the business international funding agency? plan. It should therefore be presented clearly and succinctly. Whatever its purpose, this section will need to show The financial section of the Business Plan typically includes: statements to demonstrate good financial management. These will include profit and loss accounts, balance sheets, • A summary of your institution or site’s financial history core and programme budgets and an analysis of cash flow. • The current financial situation including a detailed budget statement This part of the plan can be one of the most difficult to write • Your future financial projections including and must be written after considering all the previous − Your projected expenditure and capital sections. The strategic goals and actions discussed in the requirements earlier chapters must be taken into account in the Financial − Your projected income and funding needs Plan to show a consistent and well thought through story.
• A summary of important conclusions from the Financial Plan.
Business Planning for Natural World Heritage Sites 83 8.2. Financial History
month-by-month expression of the revenues and expenses This section is a brief summary of the organization’s financial over the year. The budget statement can be included in the history, focusing on its main sources of income in recent business plan, but is more often referenced in a separate years and also its main expenditures. It puts into context for document. potential donors where money has recently been spent in achieving the site’s conservation objectives and what sources It is an important tool for managing internal financial systems of funding have been used. and for tracking the way in which money is spent, for what, and by whom, since it presents detailed expenses arranged It can be very useful to present this information with simple according to functional groups or categories. statistics or to illustrate it graphically for the reader. These categories reflect the nature of the organization. If its operation entails trading it is likely to include the following Appendix 10.37 categories: UWA FINANCIAL STATISTICS
• Sales
• Cost of goods sold If you have specific financial goals, for example, achieving Material financial sustainability for a Protected Area site, then it may Labour be helpful to comment on progress towards achieving your Fixed costs of goods sold goals here. Gross Profit • Operating expenses • 8.3. Budget Sales and marketing
Research and development
General and administrative This section of the financial plan summarizes the Income from operations organization’s financial plans and budget for the current year. • It usually refers to a detailed budget statement, which is a • Other income and expenses • Income before taxes • Income tax and other taxes • Net income after taxes
Business Planning for Natural World Heritage Sites 84 Appendix 10.38 PROTECTED example Annual Statement of Accounts for a UK PA is given AREA MONTHLY BUDGET here as an illustration. STATEMENT Appendix 10.40 ANNUAL STATEMENT OF ACCOUNTS FOR A UK PROTECTED AREA The work of many protected areas will include conservation activities, visitor management, managing human/wildlife conflicts, enforcement of wildlife laws, etc. Whatever their 8.4. Financial Statements activities, they will need to demonstrate that the purposes for which their areas were designated are being promoted, and the operational categories should reflect those purposes. For An organization’s financial plans both for the current year (see instance, if it is a requirement in law that a protected area 8.2) or projected plans for future years (see 8.4 below) can ‘protects and enhances the special qualities that led to its be represented in a variety of different formats or financial designation’, the budget will need to show how the monies statements. spent on the organization’s activities are directed towards not only protecting, but also enhancing those qualities. These are basically standardized forms developed by accountants and financial managers to record a business’s financial information. They are designed to reflect standard Appendix 10.39: accounting principles and assure uniformity and comparability. ANNUAL PROPORTION The budget statement is the simplest of these. Other formats (AMOUNT) include a profit/loss account, a balance sheet and a cash flow OF BUDGET statement. ALLOCATIONS BY FUNCTION Clearly, these statements often relate to trading companies, BY FUNCTION but with donors becoming more financially sophisticated it is In Europe, protected area management often entails an increasingly common for conservation organizations to need integrated approach, with a complex budgetary system. An to present their financial information in these formats. The
Business Planning for Natural World Heritage Sites 85 different financial statements are largely designed to address Appendix 10.42 Appendix 10.43 CASH FLOW PROFIT AND LOSS similar concerns, namely that the organization can show that STATEMENT STATEMENT it is successfully tracking its income and expenditure, that it TEMPLATE TEMPLATE can competently account for its budget, and that it is operating viably and in line with its objectives and the purposes for which it has been established.
There are no rules as to how to illustrate an organization’s 8.5. Future Financial Projections financial operations. It is for the management to determine the best way to present this – the most important points, however, are that the reader should quickly be able to assess the financial condition (through, say, an annual profit and loss summary) and the dynamics (through, say, a cash-flow or This is the key section of any Financial Plan, showing all the monthly budget) of an organization and that the formats financial aspects of how an organization plans to achieve its presented meet any specific requirements of the intended objectives in the future. The two areas it should focus on are audience, for example, donor organizations. a) projected capital requirements and operating expenses Examples of the main types of financial statements are b) planned sources of income and funding. presented here. However, in order to prepare the financial statements the author of the Financial Plan should be familiar Usually information is presented for the next 3-5 years with basic accounting principles. Use of external help for this however a longer period could be chosen depending on the section is very common (and on many occasions advisable). purpose of the plan.
a) These are projections of funds required to achieve the Appendix 10.41 various elements of your plan. These will constitute the BALANCE statements of amounts, the timeframe over which they will be SHEET TEMPLATE required, and the purpose for which they will be used. Additional information should also be given on how they will
Business Planning for Natural World Heritage Sites 86 be disbursed and the method of reporting at agreed points in Another way of approaching this is to look at different types time. of costs: those which are fixed, those which can be based on historical spending, or those which are proportional to other Whilst a statement of projected capital needs can be factors, for example, salary forecasts will be proportional to developed alongside the strategic elements in the previous the number of staff forecast in the HR section; money spent sections, it should be written last, and must be checked on souvenir items for sale will be proportional to the number against the objectives, organizational structure and profile, of visitors forecast in the marketing plan. and the marketing and operational elements, to ensure that it reflects the needs identified in those sections. Any mismatch An example is given where a PA shows how they will forecast will leave the entire plan open to criticism. each of the line items in their budget plan.
Such projections should carry a statement of risk in Appendix 10.46 completing each element, and an acknowledgement that UWA DRAFT BUDGET unused sums will be returned, with a statement as to how PROJECTION this will happen.
Often the most difficult aspect of preparing forecasts of spending is how to estimate the costs for items that will be b) There are a number of potential sources of income which bought or services that will be paid for in the future. There can be used to fund an organization’s planned outgoings such are a number of ways of approaching this, examples of as income from own trading activities, for example, sale of Protected Area budget forecasts where budget has been merchandise, government funding, donor funding for specific allocated as a proportion of total spend to different areas, by projects or ongoing donor funding, interest from investments, forecasting forward from current spending and by allocating and so on. monies to projects in order of priority are shown here. These too should be identified and projected forward in the Appendix 10.44 Appendix 10.45 budget. Particular attention should be given to identifying PROJECTED PROJECTED which sources of funding are certain and which have yet to be BUDGET BY BUDGET BY secured. Also, it should be clear to the readers which sources AMOUNT PROPORTION
Business Planning for Natural World Heritage Sites 87 of funding are under the control of the site manager and which are under external control. Any risks related to funding not being secured or being withdrawn should be described, as should any potential new sources of funding which are being pursued.
As for the current budget statement above, once a projected budget has been prepared it can then be presented in additional formats such as a projected cash flow statement or a projected Profit/Loss statement if required.
8.6. Conclusions
It is important to summarize at the end of the Financial Plan any key conclusion. This is particularly the case if there are funding gaps that the organization needs to fill to achieve its plans or if the current plans have excluded certain projects due to lack of funding. This section can be used to summarize key financial messages to the reader.
Business Planning for Natural World Heritage Sites 88 Section 9: Action Plan
The purpose of the action plan is to show precisely how the organization plans to implement the objectives, projections and assumptions stated the business plan.
Although there are no strict rules, an action plan should make sure that all activities are linked to a person and have a specific timeframe. Two examples of a possible framework are given – use whichever appears more appropriate in your circumstances.
Appendix 10.47 ACTIVITY LIST
Appendix 10.48 ACTION PLAN FRAMEWORK
Business Planning for Natural World Heritage Sites 89
Section 10: Appendices
The 48 appendices are provided in electronic format only and can be found, along with the full text of the toolkit, on the CD originally provided with this document. They can also be found online at the following address:
http://whc.unesco.org/en/businessplanningtoolkit/
Several of the appendices consist of actual examples from the World Heritage Sites that participated in the development of the toolkit. Information contained in these documents is presented exclusively for the purpose of providing the user of the toolkit with some actual field-level samples of how the various tools have been used. The content of appendices should be considered as ‘works in progress’. Information contained therein does not reflect official policy, nor can be applied for any purpose other than help the user better understand how to use the toolkit.
Business Planning for Natural World Heritage Sites 90 APPENDIX 10.1
GLOSSARY OF ACRONYMS AND TERMS
DFID Department for International Development
EOH Enhancing Our Heritage
IUCN World Conservation Union
NGO Non-Governmental Organisation
PEST Political, Economic, Social and Technical
UNF United Nations Foundation
SIF Seychelles Islands Foundation
SMART Specific, Measurable, Achievable, Realistic and Timescaled
UNDP United Nations Development Programme
UNESCO United Nations Educational, Scientific and Cultural Organisation
WWF World-wide Fund for Nature/World Wildlife Fund
Audit Financial audit –an examination of a client's accounting records by an independent certified public accountant to formulate an audit opinion. The auditor must follow Generally Accepted Accounting Principles (GAAP) Source documents are examined to substantiate legitimacy of transactions. A careful evaluation of internal control is necessary.
Internal audit - investigation of the company's procedures and operations by the internal auditor to assure that they conform to corporate policy.
Management audit - evaluation of management's efficiency
Compliance audit - ascertainment of the firm's compliance with specified rules and regulations.
Balance sheet A condensed financial statement showing the nature and amount of a company's assets, liabilities, and capital on a given date.
Brand Your brand is everything about you and includes your name, design, your staff, communication, how you act, and a combination of all of these that are used to uniquely identify your goods and services to differentiate you from your competitors.
Break-even analysis Break-even analysis is a technique used to assess the expected profitability of a company or a single product. The process determines at what point revenues are the same as all costs. As fixed costs don't change by their very nature, this analysis will show how many units of sales are required so that the direct profit from those additional sales is equal to your fixed costs. The results usually show the sales level needed to cover both fixed and variable costs.
Break even Profit Costs per Expenditure unit
Charges
Loss
Income
Income units
Break-even point The point at which costs and income balance. Above that point the organisation is in profit, below it in deficit.
Budget Estimate of revenue and expenditure over a given period. A cash budget shows cash flows, a capital budget shows anticipated capital outlays, and an expense budget shows projected expenditures.
Business Plan A comprehensive analysis of all aspects of an enterprise relevant to its viability, including its history, management, competitive position, market, activities, products, policies, finances and projected finances. Its purpose is usually to attract finance or capital.
Capital Refers to an organisation’s worth after all the liabilities are deducted. This is also known as equity or net worth.
Cash flow Cash receipts minus cash outlays for a given period. Refers to sources of cash minus uses of cash.
Concession The right to use property for business purposes. Granted through competitive tendering often by public bodies.
Cost-benefit analysis Manner of determining whether the favourable results of an alternative are sufficient to justify the cost of taking that alternative.
Economic value The value of a good expressed as its exchangeability for other goods, taking into account all relevant costs of the good and the social benefits provided by it.
Human Resources Management A term that is replacing personnel management, implying that managers should handle merely recruitment, pay and discharge but should aim to maximise the potential of all their people.
In kind Benefits, payments or costs equivalent to a financial transaction. Volunteers provide in-kind contributions to an organisation’s activities, namely the equivalent costs of paid labour.
Market segment A sub-set of a larger identifiable group of people. Segmentation is the act of dividing the market into different sub-sets according to criteria such as behaviour or demography, in order to target their specific needs or aspirations.
Marketing Marketing is the process of identifying and satisfying customer needs.
Marketing plan A marketing plan is a written document containing an organization's or a product’s core marketing strategies, tactics and action programmes for a planning period, often one year.
Net Income The net earnings of an organisation after deducting all costs of selling, depreciation, interest expense and taxes. Where this is a surplus it is a net profit.
Organogram A diagrammatic representation of an organisation, showing the relationship between its different functions.
Public goods Products that the public sector is best positioned to utilise, as opposed to the private marketplace.
Risk Measurable possibility of losing viability or value. Risk is different to uncertainty, which is not measurable.
SWOC Analysis Sometimes known as a SWOT analysis, this is the summary of a company's opportunities for growth. SWOC stands for strengths, weaknesses, opportunities and challenges – the T stands for threats.
APPENDIX 10.2
IUCN Financing Protected Areas 1.2 What is financial planning and why is it important for protected areas? A financial plan is a tool that helps to determine the protected areas funding requirements (including the amount and timing of that funding) and to match income sources with those needs. Financial planning differs from financial budgeting in that it not only identifies how much money is needed for different types of activities, but also locates the most appropriate funding sources for short, medium, and long-term needs.
Different sources of funding have different characteristics. Some are more reliable than others, some sources are easier to raise than others, and some can be used freely according to management priorities while others come with strings attached. Some funding mechanisms take a long time and a lot of effort to establish; they therefore do not provide a short-term return, but over the longer term they offer the possibility of steady, reliable financing to meet recurrent costs. Some sources of funding have short-term time horizons (such as a bank overdraft) and others have longer-term horizons (such as a mortgage). A good financial plan identifies these characteristics, and builds a revenue stream which matches both the short and long-term requirements of the protected area, or protected area system.
Ensuring effective management and securing sufficient financial resources are vital if protected areas are to continue to provide benefits and fulfil their role in biodiversity conservation. However, financial resources are often a constraining factor in the effective management of protected areas, falling well short of needs. Protected areas have to compete with pressing demands from other sectors, such as education, defence and health. For various reasons, these other demands often prove more effective than protected areas at capturing government revenue. The result is that the proportion of public funding going into investment in protected areas is in decline in many countries.
For example, following the economic crisis in South East Asia, budget cuts resulted in significant reductions in funding for the environment e.g. in the Philippines, the Department of Environment’s budget was cut by 25% in 1999 (World Bank, 1999).
Traditionally, protected areas have been managed by government agencies and have thus tended to rely almost exclusively on government coffers. In some places, however, these arrangements are changing. New models are emerging, such as protected area parastatals in Africa, private protected areas in Southern Africa and elsewhere, NGO-managed protected areas especially in Latin America, and the growing band of volunteers assisting with protected areas management in Australia. Such new institutional arrangements may provide greater flexibility and be more innovative in securing financial resources from public and private sources.
1.3 Guiding principles These guidelines build on lessons from all types of protected areas, developed under a variety of management structures. They are intended to highlight the range of financial options available and encourage protected area managers to explore ways of diversifying their portfolios of investors so that they consider capturing resources from all possible sources.
The guidelines are based upon a number of principles: n That business plans should be developed within the overall context of the protected area management plans and legal frameworks, thus ensuring that generating revenue remains a means towards the end of more effective biodiversity conservation and does not become an end in itself; n That a business approach should be adopted towards financing protected areas, which entails defining relevant consumers and identifying ways of capturing a fair return from them; and n That both public and private revenue streams are important, with public revenue streams linked to public goods and private revenues to private goods.
Within this context, this document introduces the concept of a business approach to protected areas. This leads logically to a discussion on the development and financing of business plans for protected areas.
2. A business approach to protected areas In this section, we use quite deliberately, the language of business, talking of product, customer and marketing. The idea here is to encourage protected area managers to see their job, in part, as running a business. But it is essential that in so doing they do not lose sight of the basic values represented by protected areas. The business approach is a means to an end: a better, more sustainable protected area.
Achieving sustainable financing of protected areas requires protected area managers to identify financial sources and opportunities and to match these with the financial requirements of the protected area or protected area system. To spur such thinking, this section uses economic valuation tools to give protected area managers a structured approach to identifying existing and potential customers.
The business approach adopted in these guidelines starts by outlining the array of benefits which protected areas provide to individuals and society as a whole (Section 2.1). These benefits are then linked to customer groups, with a discussion on the nature of goods and services flowing from the protected area and the implications of these for the financial plan (Section 2.2). Finally, there is a discussion of how protected area managers can recover costs from customers for the benefits derived from the protected area. (Sections 2.3 and 2.4).
2.1 Benefits from protected areas Viewed from the perspective of a financial planner, a protected area can be seen as a business operation. An analogy might be a department store. A department store offers its customers a number of goods and services such as clothes, shoes, cosmetics, toys, meals and entertainment. The goods from a protected area include recreational opportunities, basic food items and genetic materials, while the services are such things as biodiversity conservation, crop pollination, water purification and game
Figure 1 Protected area benefits
viewing. Such goods and services provide people with a stream of benefits from the existence of the protected area. These benefits can be divided into use and non-use benefits that in turn can be sub-divided into direct, indirect, option, bequest and existence benefits. Figure 1 represents this in diagrammatic form.
The various goods and services of a protected area fall into one or more of these categories. For instance, fishing is of direct use to a person who actually visits the protected area and fishes its streams and lakes. Fishing may also be an option benefit for a person who may one day wish to visit the protected area to fish, but has not yet done so, or a bequest benefit for a person who would like future generations to have the chance to fish the stream or lake. Table 1 demonstrates the types of benefits generated by a number of protected area goods and services.
2.2 Protected area customers Each of the benefits demonstrated in Table 1 can be associated with a customer base or beneficiary group, such as locals, tourists, downstream beneficiaries and global customers.
Different types of protected areas may cater to different sets of beneficiaries, depending on the types of goods and services offered by the protected area.
The array of benefits flowing from a protected area will largely be determined by the ecological character of the area but are also affected by how accessible it is to stakeholders and customer bases, and by the institutional structure and policy environment of the protected area. For instance, a marine protected area in the vicinity of a cruise ship route will be more likely to provide direct recreational use benefits than an isolated marine protected area. It is the task of the manager to identify the relevant beneficiaries and to build these stakeholders into the financial plan for the protected area in a way which is compatible with the conservation objectives of the area as well as with the other customers and with the overall context and features of the area.
Compatibility among customers is as important to the success of a financial plan as it is to the effective management of the protected area. Incompatible customer groups can lead to conflict and loss of potential support and investment. For instance, a bird watcher may not wish to mix company with a trophy hunter and may indeed be prevented by the presence of hunters from undertaking his or her activities. In such cases a protected area manager must either choose between customer groups or identify ways to ensure that the two customers do not cross paths.
In drawing up the financial plan, and considering the financial options, the protected area manager should also take account of the following: • The size of the protected area; • Zoning regulations within the protected area; management responsibility including legal mandates; • Ownership of land and associated resources and features; • Regional variations; • Multiple classifications; • External zoning regulations including buffer zones; and • International designations (e.g. World Heritage and Ramsar).
These factors influence how the protected area can and should be managed, the various uses and customers which a protected area manager could develop for financing the protected area, and the opportunities for channeling finances back into the protected area. For instance, a protected area that has a densely populated buffer zone may be able to capture more financial resources from the local community than one situated in a sparsely populated, remote area. Or again, a Category V protected landscape will often include within it a range of tourism and land use activities that can be financial partners in the management of the area. The use of multiple classifications for a protected area may enable a manager to capture revenues from a zoned set of activities while minimising their impact on more sensitive parts of the protected area.
Related to these factors is the importance of the social and cultural context of the protected area. Social norms may play a significant role in determining which activities or uses are appropriate and which are not. For instance, hunting in the Australian context of protected areas is generally not acceptable, but it is a revenue generator for some protected areas in Africa. Likewise, gate fees for local users may be socially inappropriate in the context of some countries, but may provide a major source of income in others. For example, relative to incomes, gate fees for protected areas are much higher in East Africa than they are in North America.
To summarise, the purpose of developing a customer base for the protected area is to provide sustainable income flows that can underpin the long-term viability of the protected area. Having customers is not an end in itself. Therefore, it is necessary to ensure that the customer base is appropriate for the protected area. This can be done by ensuring uses are: • Compatible with the objectives of the protected area; • Compatible with other users of the protected area; and • Compatible with the social, cultural, legal, institutional and geographic context of the protected area.
2.3 Getting customers to pay Having identified the potential uses of the protected area, the relevant customers and how appropriate these uses and customers are, the next step is to identify ways of ensuring that the customers pay for the services and goods they derive from the protected area. Keeping in mind that protected areas supply a range of goods and services, these guidelines encourage protected area managers to explore all public and private options for finance. Protected area managers need to service both their public customers and their private customers, and receive a fair return from both through appropriate financial mechanisms.
When considering the array of uses and beneficiaries of a protected area, it is useful to determine the nature of these in terms of whether they are public or private in nature, or indeed are a hybrid of public and private. A public good is any good or service whose provision is non-excludable and non-divisible, meaning that once it is provided it is available to the general public. A private good, on the other hand, is excludable and divisible, meaning that once it is provided to someone, it is only available to that individual. Examples of public goods generated by protected areas are watershed services, carbon sequestration and critical habitat protection. Examples of private goods are trophy hunting, fishing, camping and non-timber forest products. Once an animal is hunted, a fish is caught, a camping permit allocated, or a non- timber forest product harvested, no one else can use them.
Certain private goods, such as controlled entry to protected areas, may be excludable but not divisible. These are called toll goods because they are similar to roads that charge tolls to users.
A fourth possibility is common pool goods which are divisible but not excludable, meaning that once they are used, no one else can use them, but access to them is open to anyone. An example of a common pool good could be mushrooms from a forest. Access to the mushrooms is open to anyone walking through the forest, but once they are harvested by an individual, they are not available for others.
Understanding the nature of goods and services provided by protected areas will guide protected area managers in determining how they can be managed to generate revenues.
The public good aspects of a protected area usually require grant funding, whether in the form of government allocations, overseas development assistance or foundation support. The private aspects of protected areas, on the other hand, are more easily commercialised and therefore funded by private sources of finance, such as tourism charges, hunting fees and licensing arrangements. Toll goods are also accessible to private financing through mechanisms such as gate fees and licences. Combined public and private financing may be needed for common pool goods. For instance, in the example of the mushrooms above, forest managers could try to access private financing by charging a mushroom hunting fee but may supplement this with public funding from, for instance, mushroom hunting clubs for the maintenance of the area.
As protected areas provide all types of goods and services, from public to private, it is clear that the protected area manager should look to secure revenue sources from a mix of public and private sources. In so doing, the financial plan will also generate an incentive to conserve both the public and private features of the protected area. Protected areas around the world have historically been managed primarily for their public goods aspects. The result is that all too often the survival of protected area systems depends on sometimes volatile public sector funding and philanthropic grants.
It is, of course, very important for governments and philanthropic bodies to continue to fund protected areas as a societal payment for the public benefits they provide, but declining grant finance for protected areas suggests that public funding alone may not be sufficient to assure their effective management in future. To rely on public funds alone may put the long-term viability of the protected area at risk. In short, protected area managers need to broaden their customer base and look to widening access to funding sources.
2.4 Managing customer groups This section groups the array of protected area customers into four categories: • Neighbours and residents; • Commercial customers (including visitors); • Bio-regional customers; and • Global customers.
It also examines opportunities for capturing revenues from the various goods and services these groups derive from the protected area. Few single protected areas can provide goods and services to all these groups. But it is important for the protected area manager, first to examine the potential customer groups, and then to identify a relevant set that can be effectively mobilised to ensure sustainable funding for the protected area.
2.4.1 Neighbours and residents as customers A protected area has a host of neighbours or residents who may value the protected area both for its direct and indirect benefits. These neighbours include both local communities and local businesses. (Of course, as described below, some neighbours may place a negative value on the protected area!)
Local communities potentially derive a number of benefits from protected areas. Where they are allowed to harvest products from the protected area, they can benefit from these either through direct consumption or through the sale of these goods. Products that local communities may harvest from protected areas include meat, fish, plants, fuelwood, building poles, thatch, products of cultural or religious significance, and medicines. In cases where local communities use such goods and the activity is legal, the protected area may be able to charge for harvesting rights.
Additionally, neighbours and residents may value the protected area for recreational uses, as pasture land, for transport linkages or for freshwater this is especially the case with lived-in landscapes, such as Category V protected areas. In such cases, it may be appropriate to charge the communities concerned for access rights.
Where the property market around a protected area is significantly developed, neighbouring property prices may rise with the establishment and successful management of the protected area. For example, the establishment of the Las Baulas Marine National Park in Costa Rica has resulted in a significant rise in property prices in neighbouring Playa Grande. These residents, when they choose to sell their property, will derive some very real benefits from the increased value. Similarly, in some Category V areas, landscape protection provides a boost to property values within the protected area. The protected area may be able to capture some of this value in the form of a regional or boundary area property tax.
Local residents may also benefit from employment opportunities related to the protected area. These can be in the form of direct employment from the protected area as rangers, instructors, managers, gate keepers or book keepers. Or they may benefit from jobs in businesses dependent on the protected area, such as hotels, restaurants, gift shops, craft stores or research organisations. In some countries, government support may be available to farmers who manage the land in a way that is compatible with the protected area. It is unlikely that the protected area manager could capture these benefits directly through charges, though they may be able to share in the revenues of business operations near or within a protected area.
Also, support can be raised from volunteers and supporters through friends of the park schemes, donation drives and charity events, which provide ways for neighbours and residents to support the protected area. Local businesses, such as hotels, restaurants, gift shops and craft stores, benefit from sales resulting from their geographic and commercial relationship to protected areas.
This is particularly the case for protected areas managed for tourism opportunities. These businesses may be interested in investing in the protected area to improve the natural base of their operations. There are a number of mechanisms for capturing such potential investment. A protected area manager may allow certain tourism businesses to operate within the protected area, and could charge these for the privilege; some arrange a voluntary donation from tourists so-called visitor pay-back schemes.
The protected area may capture even more revenue from operators if they open the opportunity up to bids from a number of companies, thereby using competition to drive up the prices of concessions. These issues are difficult to address, as is demonstrated in the case of the US National Parks System (Box 3). Another option available to protected area managers is to develop associated products to be sold in local businesses or in an on-site store. A portion of the profits from such sales could then be returned to the protected area. These product lines can be associated with the characteristics and natural products of the protected area such as honey and other traditional foods, traditional medicines, native seed packets, herbal foods or local crafts. They could also be educational materials such as nature guides, picture books or videos. They might be a range of nature-based products such as bird houses and feeders, or garden supplies.
2.4.2 Commercial customers Commercial customers of a protected area are those customers who derive direct use benefits from the area. Examples include tour operators, bio- prospectors and commercial filming companies. Innovation is often required to capture the values that these types of customers derive from the protected area. Gate fees and user fees are two of the more traditional means of capturing such values, but donation boxes, equipment rental and specialised tours are among many of the other appropriate ways in which visitor- generated funds can be captured.
Initially, a protected area manager may need to invest time and resources in identifying and developing markets for the protected area. This may require market surveys similar to those conducted for tourist destinations. Whatever means are used to identify the market for the protected area, the process needs to be based on a clear and stated understanding of the goal and objectives of the protected area. Without first identifying these, the manager risks developing a customer base which is incompatible with the protected area and thus undermining the very resource he or she is trying to conserve. Furthermore, having a clear idea of the goals and objectives of the area will assist in focusing the surveys. For instance, if the objectives of the protected area include public education, a market survey could look into schools or universities as well as the market for more informal educational experiences such as guided tours or specially designed courses. Some tips on marketing are provided in Box 4.
Once the range of markets for potential commercial consumers is identified, the next step is to choose the most appropriate products to develop. This entails understanding the niche of the protected area and defining its competitive edge. The protected area manager needs at this stage to consider compatibility of various uses, both between the various commercial customer groups and between commercial customers and other customer groups. Further considerations when determining which markets to pursue may include the particular strengths or limitations of the staff, the interests of the local community, and the possible secondary benefits flowing to that community.
Developing and marketing products may also involve something of a campaign to raise interest in, and awareness of, the protected area. This could be done by using traditional communication tools, such as leaflets and brochures, or through newer, electronic means such as the Internet and interactive CD ROMs. In specialised cases, where the market is at the high- end and is exclusive, it may be more appropriate to invest in personal communications with key individuals. For instance, should a protected area manager wish to establish a service for the film industry, or develop a niche market of protected area products, he or she will need sophisticated marketing. Such an approach is demonstrated in the case of Brazil nuts in Box 5.
A note of caution, however, is needed. Commercial markets are subject to shifts due to events beyond the control of the manager. Relatively small changes in taste or fashion or more fundamental changes in circumstances (for instance, the decline of the Asian economies or war in the Balkans) could lead to significant impacts on the protected area’s customer base. As far as possible, this vulnerability should be acknowledged and planned for by diversifying the customer base so as to include a range of customers.
2.4.3 Bio-regional customers The bio-regional customer base of a protected area can include downstream beneficiaries of watersheds and other ecosystem services, those benefiting from flood control or storm protection, and beneficiaries of nutrient retention or micro-climate benefits. The indirect nature of such goods and services often requires innovative ways of identifying and capturing revenues. The first step, of course, is to identify the customers and the benefits they derive. This requires an initial identification of the indirect goods and services of the protected area. Some bioregional customers are trans-national, making it harder to assess their received benefits and to capture revenues related to these benefits.
High transaction costs often make it difficult to capture such indirect benefits through market mechanisms. An alternative is to capture increased public funding by demonstrating these benefits in monetary terms to potential donors. This may involve lobbying government agencies and, in some cases, overseas development agencies, or multilateral donors to acknowledge the values of protected areas through increased support.
Capturing the bioregional values that people hold for a protected area can pose some interesting challenges. Indirect uses, such as watershed services and storm protection, are often non-excludable goods, meaning that they are, by and large, public goods. That is not to say that their values cannot be captured through market mechanisms. It may, however, take some innovative thinking and restructuring of regional governmental cooperation. The now classic example of the Catskills Mountains watershed and New York City provides an interesting example where residents of the Catskills Mountains are paid by New York City residents for the water purification services of their ecosystem. The Costa Rican example in Box 6, and the case study from that country in Part C, also provide demonstrations of payments for ecosystem services.
2.4.4 Global customers The interdependence of natural systems means that both present and future generations stand to gain from conservation efforts. In this context, it is the global customer who receives these intangible benefits, often without having to provide due compensation.
It may help to view global customers in their different institutional groupings such as intergovernmental organisations, donors or nature advocacy organisations. A protected area financial plan should identify the values these global customers hold as well as the benefits provided to them. Natural areas, and their related biophysical components, are vital to our survival. They are truly a global resource. This has been recognised by the majority of countries as exemplified by six global conventions, all of which deal with some aspect of biodiversity conservation. Protected areas play a vital role in the Convention on Biological Diversity (CBD), the Convention on Migratory Species (CMS), the Convention on the International Trade in Endangered Species (CITES), the World Heritage Convention (WHC), the Ramsar Convention on Wetlands and the Framework Convention on Climate Change (FCCC). Two of these agreements, the World Heritage and the Ramsar Conventions, create a specific requirement to protect certain areas that meet international criteria, and all of them encourage the establishment and maintenance of protected areas.
The World Heritage Convention This convention provides special designation for natural and cultural sites considered to be of outstanding universal value to humanity. The World Heritage Convention has a funding mechanism to assist in preparing management plans or training for protected area managers of World Heritage sites (more information about this fund is available in the directory on the Internet at http://economics.iucn.org). Also, by affirming the international importance of these sites, the convention enhances the prospect of international funding, e.g. from intergovernmental donors (including the GEF), bilateral donors, the United Nations Fund (which has decided to focus some of its support on World Heritage sites) and philanthropic sources. It also increases the prospects of funding from commercial sources, and notably from tourism.
2.4.5 Identifying and understanding customers A financial plan requires the protected area manager to know who the customers of his or her protected area are, and how their interests might be captured so as to provide financial support to the area. The framework provided seeks to divide customers into discernible groups based on the types of benefits they receive from a protected area.
Every protected area will provide some benefits to such customer groups: the size of such benefits to each group will be determined by the management objectives of the protected area. To capture the financial resources from these customers, the financial plan needs to consider: (a) the goods and services which a protected area provides (based on management objectives), (b) the customer base, and (c) a system for capturing benefits (see Box 8). The concept of the financial plan is developed in section 3.7.
3. Developing and financing a business
A financial plan is a component of an overall business plan, which in turn is one element of a management plan for the protected area. This layering of plans and strategies is depicted by three concentric circles in Figure 3. At first sight, this may seem likely to lead to death by planning but, on closer examination, it is clear that each of these planning circles is critically important to the success of the protected area. The protected area management plan provides the essential policy framework for the business and financial plans, by clarifying the management objectives of the protected area, the relevant users, the financial needs of the protected area and the resources available to the protected area. This information feeds into the business plan for the protected area, which examines in more detail the customer base, goods and services, marketing strategy and implementation strategy for the protected area. This information in turn contributes to the financial plan for the protected area, which further details key assumptions and provides a break-even analysis (which identifies when the business is expected to turn in its first profit) and profit and loss projections. As Figure 3 also shows, the information flows should, of course, be two-way. Profit and loss projections and other information in the financial plan feed back into both the business and management plans, while information from the business plan feeds back into the management plan.
This guide develops the concept of customer bases for protected areas to encourage protected area managers to think innovatively about sources of revenue for their protected area. The business plan needs to be developed around this customer base. A clearly thought-out business plan provides a structured approach to building a customer base and achieving a sustainable income flow for the protected area.
APPENDIX 10.3
Seychelles Islands Foundation
Section 1: Executive Summary
The SIF Business Plan is divided into ten sections that address the business philosophy and policies of the SIF in the management of the Seychelles two World Heritage sites of Vallee De Mai and Aldabra.
The Business Plan is intended to cover a period of three years (2005-2008) and should be reviewed annually to monitor performance and progress.
The Business Plan is the result of a pilot project involving Consultants of Shell and Shell Foundation, the executive management staff of the SIF and the participation of UNESCO World Heritage Centre. It is one of a number of plans that are referenced by SIF, including a Management Plan and Operations Plan. This Business Plan differs to other plans that have been developed for SIF in that it deliberately looks at the more business side to their organisation, and not the conservation side which is much more familiar to them. This ‘business’ management of SIF is the area that has been identified for some time as lacking a strategic plan.
Vision / Mission The Seychelles Island Foundation is a public trust established by government under the Seychelles Island Foundation Decree of 1979. The Foundation was created to manage and protect the World Heritage Sites of Aldabra and Vallee de Mai.
Overall, the Foundation can be characterized as a leading environmental organization dedicated to ensuring that Seychelles World Heritage sites are well-managed protected areas where conservation, research, education and nature appreciative and protective tourism are sustainably balanced and financially viable.
Company & Market Overview The Foundation operates two business units at the Vallee De Mai on Praslin and Aldabra Research Station on Aldabra atoll. The Foundation’s Head Office is based in Victoria, Mahé.
The SIF revenue for 2003 was SR4,650,000 and the revenue from Jan – Oct 2004 stood at SR4,600,000 (USD836,364). The revenue is expected to grow by 37% with the full operation of the new shop at Vallee de Mai, but then a drop in revenue of approximately 6% is expected when Fond Ferdinand is fully operational and attracting visitors.
The SIF main revenue stream is the tourists visiting the Vallee De Mai providing some 70% of the Foundation’s income. Over the past 5 years the visitor market at the Vallee De Mai averaged some 50,000 visitors representing some 45% of the national tourism market.
During the same period the tourism services market has remained volatile marked by a constant annual ups and downs in the tourist arrival figures. However the overall trend showed a steady rate. The overall tourist market for 2002 amounted to some $150 million in early 2002, which is an increase of 13% from 1997.
Despite its volatility, the overall potential of the Vallee De Mai tourist market is yet to be determined, although all indication are that it has the capacity to generate more revenue for Vallee De Mai. The area of greatest potential in this market is in the area of souvenir sales.
The major market segments are: For Vallee De Mai: This is mass tourist market consisting of general tourist visiting Seychelles, cruise ship travellers, nature lovers, couples and family groups, professional photographers and journalists, promotion agency representatives, palm enthusiasts and scientists/researchers. Aldabra: This is a niche market of selective cruise ship travellers, nature enthusiasts, specialist divers, professional photographers and journalists, rich personalities, scientists/researchers
To accomplish this goal we have developed a comprehensive plan to intensify and accelerate our marketing and sales activities, product development, services expansion, distribution and customer service.
Product Strategy & Marketing Plan The SIF marketing strategy is to aggressively enhance, promote and support the fact that our products are the only 2 UNESCO declared World Heritage sites of Seychelles.
The Vallee De Mai will be marketed for its unique natural beauty and the mystical palm forest that is easily accessible and has a reputation for being the Garden of Eden and one of the few sites in the world where you can see the Coco de Mai palm and the Black Parrot.
The Aldabra will be marketed as the world’s largest raised coral atoll of extreme unique and pristine ness with diverse wildlife such as the world’s largest giant tortoise population.
The Foundation currently offers the following products:
• Nature access for tourists. • Photographic license to professional groups. • Sale of coco de mer nut as souvenir • Access to scientists and researchers • Sale of souvenir.
To implement the business plan our advertising and promotion strategy is to position the Foundation as the market leader in eco-tourism . For the purpose of implementing the new business plan for the SIF, the following promotion strategy shall be pursued:
The SIF will tender out the design and production of poster and in flight magazine advertisements.
The SIF’s marketing strategy incorporates plans to sell its products through several channels that include destination management companies, hotel desk representatives, and SIF’s own outlets.
The top two business risks that SIF faces are the drop in tourism level in Seychelles in general and competition from Fond Ferdinand.
Risk Management The biggest risk facing SIF in the short to medium term is competition from Fond Ferdinand which could significantly reduce the number of visitors to Vallee de Mai and, hence, the main revenue stream of SIF. This is turn could undermine SIF’s ability to meet its conservation objectives at Aldabra. In order to mitigate against this risk, one of the initiatives proposed is to build a world class visitor centre and shop at Vallee de Mai which will offer a better educational and tourist experience to all visitors, and will sell merchandise which will improve the financial sustainability of SIF.
Finances Entry fee to Vallee de Mai accounts for 70% of all revenue for SIF, whilst Aldabra accounted for 50% of all costs. The aim over the next three years is to increase the revenue generated from Vallee de Mai and decrease the costs of running Aldabra. In the first instance, SIF will develop yearly budgets that will be monitored through out the year by SIF and the board.
Conclusion The SIF enjoys an established track record of excellent support and respect from our customers; however, the threat of competition by Fond Ferdinand is a risk that needs to be planned for as it is highly likely that we will lose some customers to this competition. The proposed new visitor centre/shop is a critical aspect to mitigate against the competition risk.
Whilst the first business plan for SIF has been completed, its success is dependant on its implementation. It is recognised that there is a large amount of work is required to implement all the actions from the business plan and this cannot be done with the current resource levels. A new Project Manager is required by SIF to help implement many of the required actions, as well as freeing up current SIF employees to complete the day to day operations and to address some of the other risks and issues facing SIF which are not fully covered in this business plan, as they were not the highest priorities.
This business plan is a living document that will change over time and as a result of significant changes to SIF and its operating environment. Therefore, it is planned to review the business plan annually. In addition, there needs to be further work in monitoring the implementation of this business plan, and whether or not UNESCO can assist with this as part of the Enhancing our Heritage Management Effectiveness project.
APPENDIX 10.4
EXECUTIVE SUMMARY WORKSHEET Sections Possible elements Introduction Hook the reader – why does your organisation matter? How will this business plan help you to perform better?
Vision/mission
Organisation Key milestones; legal context; profile
Organogram How is your organisation structured? Is it hierarchical or ‘flat’? Who is responsible for what? Does everyone need to be included? Brief description of titles/responsibilities.
Context/market
Strategy How will you move forward?
Finance What will the strategy cost?
Risks What could go wrong? Internal/external risks
Conclusion
APPENDIX 10.5
TUBBATAHA STAKEHOLDER ANALYSIS
Stakeholder Expectations and Power and Commonality and Type Objectives Influence Conflict National Govt . Maintain the Regulation, Increase tourism, (DA, DND, ecological condition policies, taxation, biodiversity DENR, DOT of TRNP funding conservation, DBM, PCSD) Provincial Govt Maintain the Regulation, Increase tourism, ecological condition policies, taxation, biodiversity of TRNP funding conservation, Municipal Govt Increase share Policy-making, Increase tourism, from tourism compliance with biodiversity revenues; regulations conservation, increase community devt networking and CRM support Non-Government Maintain the Funding, technical biodiversity ecological condition support, networks conservation, increase of TRNP; maximize networking, secured educational funding opportunities; Donors Maintain the Funding, technical biodiversity ecological condition and professional conservation, increase of TRNP support, networks tourism Fishing Operators Increase income, Source of info for Exploit TRNP benefit from the research, Resources ecological condition participate in conservation activities Dive Operators Increase income, IEC, policy-making, biodiversity Maintain the regulations and conservation, increase ecological condition enforcement, visitations,enforcement, of TRNP influence education behaviour of tourists Tourist Visitor satisfaction Provide revenues, biodiversity IEC, enforcement, conservation, bad feedback, diving practices and advocacy, market bio-souvenirs information PPC Tourism Increase income, IEC, linkages, Increase visitations Sector Maintain the tourism exposures ecological condition of TRNP Researchers Maintain the Provide sound biodiversity ecological condition science for conservation of TRNP, gather decision-making, data for own study Staff Maintain the Effective biodiversity ecological condition management, conservation, secured of TRNP; salary, job policy funding satisfaction and security Non-users Maintain the Provide addl funds maintenance of the ecological condition for conservation, bequest values of of TRNP educational TRNP opportunities, advocacy
APPENDIX 10.6 SWOC Analysis – Seychelles Islands Foundation Internal Forces External Forces Strengths Opportunities • Two very good products: Vallee de Mai known globally • Increase revenue from tourists who visit Vallee de Mai by by tourists and Aldabra globally known by scientists/ selling merchandising, food, etc conservation/environmentalist • Networking/co-operation with other organizations, e.g. • Large market share of Seychelles tourist at Vallee de Mai exchange programme • Good relationship with government and NGO’s: Good • Large potential global funding opportunities, e.g. EU, international contacts, e.g. Shell, Smithsonian, Royal World Bank, Private sector Society • Large market of scientists/environmentalists/education • Good reputation internationally visits that could increase revenue by fees, selling • Work force has a balanced skill set and an expert in the research, grants. (This applies for Aldabra and Vallee de key locations of Aldabra and Vallee de Mai Mai) • Good employee – good first appeal and good • Improve HR skill base through training remuneration • Chance to reduce costs (e.g. communication: V sat, • Currently financially viable – in the ‘black’. Have Foreign exchange) Exchange account • Extend World Heritage site territory with local/regional • Small, flexible and autonomous org. • Accepting of change and new technology • Increase revenue from tourists who visit Aldabra by selling merchandising, food, ect • Increase revenue from online sales and fundraising campaigns • Obtain revenue from global community or general visitors to Seychelles
Weaknesses Challenges • Only one main revenue stream: Heavy subsidy to • Tourism reducing in the Seychelles Aldabra which is a large cost centre • Competition from Fon Ferdinand • Operations not efficient or optimal: inventory • Natural disasters (e.g. fire, global warming, cyclone) management, selling/marketing skills, procurement • Negative government intervention and change, e.g. lease • Lack of Key Performance Indicators (KPI’s), targets and arrangement, splitting two sites assessments for SIF and individuals (work plan) • Boat logistics supplier outsources or closes • No business/marketing plan: no objective structure for • Damage relationship with Preslin population long term. Skills important aspect • Poaching increases at both sites • Little experience in budgeting or budget vs actual tracking • Do not have control of logistics to Aldabra as 3rd operates boat • No experience in project proposal writing for funding • Small: Lack of resources to exploit opportunities • No human resources policy • Lack of office space
APPENDIX 10.7 UWA : SWOT Strategy Table
Major Opportunities Major Threats • Strong support and cooperation from • Migration/break-up of habituated gorilla groups government, donors and communities • Poaching and illegal trade • Improved security, infrastructure and • Physical threats to PA (fire, over-development) political environment • Disease outbreak • Increasing interest in Gorilla • Reduction in tourism due to global or political conservation and nature tourism threats • Well organised tour operators for Uganda Poor roads to parks and E.Africa Perception of poor security due to foreign • Queen’s visit to Uganda 2007 embassy travel advice Primary Strengths Develop range of diverse products in Habituate new gorilla group(s) in BINP • Excellent staff and guides addition to gorilla tracking (e.g. bird Work with SWIFT and rangers to combat poacing • 50% of world’s gorillas in watching) and enhance security World Heritage site Work with communities to develop cultural Sensitise communities to threats (e.g. fire, disease) • Wide product offering tours + additional craft products • Good partner cooperation and develop joint plans Market BINP-MGNP to new customer Bwindi large revenue segments Lobby local government for better roads generator Use Queen’s visit as marketing opportunity • High level of security Primary Weaknesses Improve facilities, signage and Develop contingency plans for major disruptions • Over reliance on gorilla accomodation due to fire and disease tourism Train guides in specialised skills Develop plan for MGNP in case that gorilla group • Limited number of do not return including alternative products habituated groups constrain Develop products to encourage more visitor numbers visitors in low seasons (e.g. special tariffs) UWA to develop plan for ensuring accurate foreign • Inadequate facilities and embassy travel advice signage Seasonality • Inadequate marketing of products • Guides lack specialised skills
APPENDIX 10.8
Heading Objective Description Seychelle Islands Foundation 1. Improve protection and Objectives conservation of SIF managed protected sites • Develop a monitoring program to review all research activities • Increase research activities • Improvement in knowledge capital (attract more people with Masters and PhDs) • Reduction in the number of alien species in both sites • Restore damaged areas • Review policies and procedures for boats and visitors in Aldabra (to ensure minimum impact of human factor) 2. Improve financial and business management of SIF • Setting Budgets and track them for all sites / operations • Reducing “unnecessary costs” • Increase revenues in Vallee de Mai • Using new technologies to reduce cost • Reduce maintenance cost • Reduce inventory • Reduce purchasing cost • Improve staff skills • Reduce number of job descriptions (more generic roles) • Move to own building
3. Maintain Vallee de Mai in the position of being the most popular tourist site in the Seychelles Keep attracting 50% of the tourists in Seychelles
4. Develop strategic partnerships • Investigate scientific or environmental partners who will attract more research undertaken in Aldabra • Develop skill sharing/ exchange programs with other NGOs
Heading Objective Description Individual Objectives 1. Improve scientific/research monitoring
Name: Executive Director • Identify quality & use of research data. Get summaries from sources using Aldabra data commenting on the way the used the data and their quality • Get periodical samples of research to assess quality • Prepare workshop (for Aldabra) with various scientists to facilitate monitoring and knowledge exchange (get sponsorship, select people, prepare structure, prepare presentations etc)
Owner: Lindsay Chong Seng Delivery Date: End of March 2005 Progress Review: February 2005 by Chairman of SIF
2. Increase Volumes of Research Scientists by 6 in Aldabra
• Conduct a Review on refurbishing the facilities in Aldabra (plan, budget, order) to allow greater inflow of scientists in the site • Evaluate the possibility of scheduled group visit if scientists (one or two big group visits every year with a significant planning period • Ensure one of the visiting scientists is conducting research that is of interest to SIF • Include market for visiting scientists in SIF marketing plan
Owner: Lindsay Chong Seng Delivery Date: End of January 2005 Progress Review: December 2005 by Ronny Ranaud
3. Decrease Operating Cost in Aldabra by 10%
• Focus on cost of fuel and energy • Preventative Maintenance • Use budget to track cost • Review transport of goods (bulk etc) • Cut on wastage • Inspect quality of goods before sending supply boat • Track stock levels
Owner: Lindsay Chong Seng Delivery Date: December 2005 Progress Review: July 2005 by Ronny Renaud
Heading Objective Description Individual Objectives 1. Budget Tracking
Name: Executive Officer • Gather Historical Cost Information • Identify and use cost information
which is still applicable • Review Marketing & Operations Plan predictions of investments and forecasts • Record Assumptions • Itemise structure • Identify tracking periods • Compose Budget • Review Budget • Put Budget forward for Approval
Owner: Ronny Renaud Delivery Date: End of January 2005 Progress Review: November 2004 by Lindsey Chong Seng
2. Increase SIF Revenues by 5%
• Review outsourcing of ticket sales in VDM • Evaluate possibilities of private sector funding • Discount Bulk sales of coco-de-mer • Review bulk sales of merchandise products • Encourage animal adoption scheme • Donation Box in VDM
Owner: Ronny Renaud Delivery Date: End of April 2006 (12 months duration) Progress Review: October 2005 by Lindsey Chong Seng
3. Increase Skills of key personnel
• Select Partners of exchange program by end of February 2005 • Compose MoU • Initiate Exchange Skill-Sharing Program. Target to have 2 people done the exchange program by end of 2005 • Send one HQ and one VDM employee to an external training course • Evaluate possibilities for internal job rotation between Aldabra and Vallee de Mai employees (“Ranger Swap”) • Develop at least one on the job training scheme at any site (i.e. first aid, computer skills, negotiating skills, service delivery)
Owner: Ronny Renaud Delivery Date: December 2005 Progress Review: -
APPENDIX 10.9
SEYCHELLE ISLANDS FOUNDATION ORGANISATIONAL PROFILE
Introduction The Seychelles Island Foundation, (herein referred as the ‘Foundation’ or ‘SIF’) is a public trust established by government under the Seychelles Island Foundation Decree of 1979. The Foundation manages and protects the World Heritage Sites of Aldabra and Vallee de Mai and has the President of Seychelles as patron. The Board of trustees, appointed by the President, has 14 members, including not less than five representing organizations concerned with the conservation of wildlife and natural history or national academics of science.
The Vision The SIF is a leading environmental organization dedicated to ensuring that Seychelles World Heritage sites are well-managed protected areas where conservation, research, education and nature appreciative and protective tourism are sustainably balanced and financially viable.
The Mission The mission of the Foundation is to manage and conserve the natural life and to initiate and instigate scientific research into such natural life at the two Seychelles World Heritage sites of Vallee De Mai and Aldabra.
Key goals and Objectives • Improve protection and conservation of SIF managed protected sites • Develop a monitoring program to review all research activities • Increase research activities • Improvement in knowledge capital (attract more people with Masters and PhDs) • Reduction in the number of alien species in both sites • Restore damaged areas • Review policies and procedures for boats and visitors in Aldabra (to ensure minimum impact of human factor) • Improve financial and business management of SIF • Setting Budgets and track them for all sites / operations • Reducing “unnecessary costs” • Increase revenues in Vallee de Mai • Using new technologies to reduce cost • Reduce maintenance cost • Reduce inventory • Reduce purchasing cost • Improve staff skills • Reduce number of job descriptions (more generic roles) • Move to own building • Maintain Vallee de Mai in the position of being the most popular tourist site in the Seychelles • Keep attracting 50% of the tourists in Seychelles • Develop strategic partnerships • Investigate scientific or environmental partners who will attract more research undertaken in Aldabra • Develop skill sharing / exchange programs with other NGOs • Improve communications with the community and stakeholders • Improve community participation in conservation efforts of the SIF
The management The Foundation is managed by a Board of Trustees, appointed by the Patron (President of the Republic) and responsible for administering the Foundation and provides advisory service to the Patron. They consist of a Chairman and 14 other members of whom 11 are men and 3 women.
The Foundation operates two business units at the Vallee De Mai on Praslin and Aldabra Research Station on Aldabra atoll. The Foundation’s Head Office is based in Victoria, Mahe.
For day-to-day running of the Foundation’s affairs, responsibilities and powers of the Board are delegated to the Executive Director and Executive Officer. Both are responsible for the preparation, implementation, and supervision and monitoring of the daily operations through staff of the Foundation and collaborative activities with other agencies and the community.
Their backgrounds consist of more than 20 years experience in environmental conservation for the Executive Director, and an Executive Officer with 13 years of public and business administration experience.
The Executive Director and Executive Officer are supported by the Day-to-day Management Operations Group consisting of the:
Day-to-day Management
Executive Director Executive Officer
Head Office Vallee De Mai Aldabra
Accountant Warden Warden Administrative Assistant Senior Ranger Research Officer Logistic Manager
SIF SWOC Analysis and potential short-term and long-term organisational responses
Primary Strengths Primary Weaknesses
Two very good products: Vallee de Mai known Only one main revenue stream: Heavy subsidy globally by tourists and Aldabra globally known to Aldabra which is a large cost centre by scientists, conservationists & Operations not efficient or optimal: inventory environmentalists management, selling/marketing skills, Large market share of Seychelles tourist at procurement Vallee de Mai Lack of KPI’s, targets and assessments for SIF Good relationship with government and NGO’s: and individuals (work plan) Good international contacts, e.g. Shell, No business/marketing plan: no objective Smithsonians, Royal Society structure for long term. Skills important aspect Good reputation internationally Little experience in budgeting or budget vs Work force has a balanced skill set and an actual tracking expert in the key locations of Aldabra and Do not have control of logistics to Aldabra as Vallee de Mai 3rd operates boat Good employee – good first appeal and good No experience in project proposal writing for remuneration funding Currently financially viable – in the ‘black’. Small organization implies lack of resources to Have Foreign Exchange account exploit opportunities Small, flexible and autonomous No HR policy Accepting of change and new technology Lack of office space Major Opportunities Major Challenges
Increase revenue from tourists who visit Vallee Tourism reducing in the Seychelles de Mai by selling merchandising, food, ect Competition from Fon Ferdinand Networking/co-operation with other Natural disasters (e.g. fire, global warming, organizations, e.g. exchange programme cyclone) Large potential global funding opportunities, Negative government intervention and change, e.g. EU, World Bank, Private sector e.g. lease arrangement, splitting two sites Large market of Boat logistics supplier outsources or closes scientists/environmentalists/education visits Damage relationship with Preslin population which could increase revenue by fees, selling Poaching increases at both sites research, grants. This applies for Aldabra and Vallee de Mai Improve HR skill base through training Chance to reduce costs (e.g. communication: V sat, exchange) Extend World Heritage site territory with local/regional org. Increase revenue from tourists who visit Aldabra by selling merchandising, food, etc. Increase revenue from online sales and fundraising campaigns Obtain revenue from global community or general visitors to Seychelles
Strategic choices: Invest: Clear matches of strengths and opportunities lead to comparative advantage. Defend: Areas of threat matched by areas of strength indicate a need to mobilize resources either alone or with others Decide: Areas of opportunity matched by areas of weakness require a judgment call: invest or divest; collaborate. Damage Control: Areas of threat matched by areas of weakness indicate need for damage control.
Current situation The projected revenue for SIF for the year 2004 stands at SR4,600,000 (USD836,364) showing a growth around 6% over 2003. Over the next 2 years a forecast of 5% annual increase in revenue collection is being projected.
The tourists visitor market at the Vallee De Mai has shown a steady rate of decline over the past 4 years (4.5%) reflecting the country-wide trend. However, over the same period the an average 50,000 visitors visited the Vallee De Mai which represents some 40% of the national tourism market.
This market has brought in an annual revenue of approximate SR5 million in foreign exchange earnings. Despite concern of marginal drop in the national tourism market and possible competition from other eco-tourism site on Praslin, SIF remains confident in being able to maintain the same market share over the next 2 years.
SIF is however concerned about the escalating cost of providing logistical support to its operations on Aldabra. This outpost is costing the Foundation some SR 2.5 million annually and generating only about SR 1.0 million. As one of its main priority for the next 2 years the Foundations aims to decrease the operational costs on Aldabra and improve revenue collection through maximizing the use of the scientific facilities on the atoll.
APPENDIX 10.10
Seychelles Islands Foundation Market Analysis
Market Definition
The market in which the SIF operates could be defined as a matured tourism services market.
Over the past 5 years the tourism services market has remained volatile marked by a constant annual ups and downs in the tourist arrival figures. However the overall trend showed a steady rate. The overall tourist market for 2002 amounted to some $150 million in early 2002, which is an increase of 13% from 1997.
The SIF operates in a natural sites management portfolio providing access to tourists visiting these two distinct tourism locations of the Vallee De Mai palm forest and the Aldabra atoll. The market characteristic of the Vallee De Mai is that of a mass market, whilst that of the Aldabra is a niche market for specialist groups of nature lovers, researchers and scientists.
The overall size of the mass tourism market is approximately 125,000 visitors with Vallee De Mai capturing some 40% of the market. This market is also volatile with its overall potential yet to be determined, although all indications are that it has the capacity to generate more revenue for Vallee De Mai. The area of greatest potential in this market is in the area of souvenir sales.
The stability of these market segments is viewed as fairly solid and continuously expanding marked by an increased level of tourists enhancing their visitor experience by visiting different islands in the granitic group of the Seychelles.
Industry forecasters predict for the next two years this market will continue to grow as more visitors take on the trend in island hopping.
Below are the key points in defining the market segments:
Vallee De Mai Aldabra Aldabra SIF Head Office SIF HQ Product features Nature access for tourist Nature access for Coco de Mer Photographic license tourist Merchandising of t- Lease of shop Photographic license shirts, books etc.. Merchandising Animal adoption scheme Research reports Lifestyle of Tourists to Seychelles Mostly rich Scientists and customers Couples and families personalities researchers between 30 to 50 years Nature enthusiasts Coco de mer Seasoned divers dealers Tour operator Geographical Mostly Europeans Mostly Europeans Local and location <5% Local residents and Americans international
Seasonality Visits are daily Periodic visit – Visits are daily November to April
The major market segments are: For Vallee De Mai: mass tourist market and Aldabra: Niche market of selective eco-tourist, researchers and scientists.
Below is a list of customers of the SIF group: Vallee De Mai Vallee De Mai handles an average 50,000 visitors per year. The existing and potential customers of Vallee De Mai include general tourist visiting Seychelles, cruise ship travellers, nature lovers, couples and family groups, professional photographers and journalists, promotion agency representatives, palm enthusiasts and scientists/researchers. The market is distributed as followed: General tourists: 70% Couples & family groups: 15% Cruise ship travellers: 5% Profession groups: 3% Others: 7%
Aldabra Aldabra receives an average of 600 visitors per year. The existing and potential customers of Aldabra include cruise ship travellers, nature enthusiasts, specialist divers, professional photographers and journalists, rich personalities, scientists/researchers. The market is distributed as followed: Cruise ship travellers: 85% Specialist divers: 10% Others: 5%
SIF Head Office SIF Head Office handles different group of customers namely those selling SIF products to tourists. The existing and potential customers of SIF Head Office include tour operators, cruise ship agents, coco de mer dealers, and science and research organizations. The market is distributed as followed: Coco de mer dealers: 45% Tour operators: 25% Cruise ship agents: 10% Research organizations & individuals: 15% Others: 5%
APPENDIX 10.11 PEST ANALYSIS
Political Economic • Ecological/environmental issues • Home economy situation • Current legislation home market • Home economy trends • Future legislation • Overseas economies and trends • European/international legislation • General taxation issues • Regulatory bodies and processes • Taxation specific to product/services • Government policies • Seasonality/weather issues • Government term and change • Market and trade cycles • Trading policies • Specific industry factors • Funding, grants and initiatives • Market routes and distribution trends • Home market lobbying/pressure groups • Customer/end-user drivers • International pressure groups • Interest and exchange rates • Wars and conflict • International trade/monetary issues Social Technological • Lifestyle trends • Competing technology development • Demographics • Research funding • Consumer attitudes and opinions • Associated/dependent technologies • Media views • Replacement technology/solutions • Law changes affecting social factors • Maturity of technology • Brand, company, technology image • Manufacturing maturity and capacity • Consumer buying patterns • Information and communications • Fashion and role models • Consumer buying mechanisms/technology • Major events and influences • Technology legislation • Buying access and trends • Innovation potential • Ethnic/religious factors • Technology access, licensing, patents • Advertising and publicity • Intellectual property issues • Ethical issues • Global communications
SIF PEST analysis
Factor Examples Own business Political Taxation policy Favourable tax conditions for SIF: exempted from paying trade tax on imports; duty Environmental free fuel; no business tax protection laws Favourable environmental laws backed by political commitment Government stability Seychelles has political stability Economic GDP trends Seychelles has a high per capita income # USD8,000 Unemployment Low unemployment Business cycles Seychelles has an expanding economy Seychelles has forex shortage Social Population Fairly young population demographics Enjoys good lifestyles adapted to western countries Lifestyle changes More than 90% literacy rate Levels of education Seychellois travels a lot to different countries for holidays and shopping Social mobility Technological New technologies Adapts well to new technology Industry focus on Industries applies technology very quickly technological effort Technology is easily accepted and applied Speed of technology transfer
Analysis of macro-economic environment for SIF
The PEST Analysis provides the SIF with the tool to assess the Political, Economic, Social and Technological external factors that may affect its business performance over the period of the plan.
Some of the main features of the PEST Analysis that are applicable to the SIF are: • Political (& Legal): The SIF is by status of a public trust set up under an act of law; SIF enjoys customs and trade tax exemptions from government against all imports by the Foundation and duty free fuel; SIF is also exempted from paying Business Tax; It is backed up by various environmental laws for protections of bio-diversity and a strong political commitment from government.
• Economic: Seychelles enjoys a per capita income, low unemployment level and an ever expanding economy which contributes to the foreign exchange shortages
• Social (& Environmental): Seychelles has a fairly young population who enjoys good lifestyles marked by a taste for fashion and keeping up with international trend. Seychelles enjoys 90% literacy rate with most people being tri-lingual (English, French and Kreol).n Seychellois also enjoys traveling overseas for holidays and shopping. The civil society enjoys support of government and there are a number of environmental pressure groups dedicated to environmental protection and conservation.
• Technological: The introduction and use of new technology in industries is reasonably fast and easily accepted.
APPENDIX 10.12 Tubbataha PEST analysis
Factor Examples Own business Political o Taxation policy o Political stability : Philippines generally stable but o Environmental corruption rife, Palawan seen as peaceful and highly protection laws environmentally conscious o Government o Unrest in Mindanao/Sulu has given rise to travel stability advisories o Numerous environmental laws but unenforced o Tax laws poorly enforced, taxes and duties variable and subject to individual interpretation Economic o GDP trends o Philippines has an expanding economy o Unemployment o Large discrepancy in per capita incomes between o Business cycles rich and poor (average : $ ) o High unemployment and underemployment o Economy tied to US$ o Local economy (Palawan) fisheries based Social o Population o Fairly young population demographics o Local Palawan population largely migrant o Lifestyle changes o Filipinos resilient to misfortune o Levels of o More than 90% literacy rate, English commonly education spoken o Social mobility Technological o New technologies o People adapt well and quickly to new technology o Industry focus on o Industries applies technology very quickly technological o Technology is easily accepted and applied when effort affordable o Speed of technology transfer
APPENDIX 10.13 SIF Customer Profile
CUSTOMER TYPE (OR NAME): Visiting tourist to Vallee De Mai and Aldabra Factor Examples Please provide a brief description of key client characteristics Demographics Age Average age 30 to 50 years (VDM) Sex Average age 40 to 65 years (Aldabra) Marital Status Large % are couples and family groups Education Most are fairly educated on the environment Profession Mostly western Europeans (VDM) Mostly Americans and western Europeans (Aldabra)
Economic Factors High-Medium-Low Most come from medium to high income bracket Income Occasionally some are rich personalities (Aldabra) Personal Debt Taxes Savings Tendency
Consumer Please identify Most want to visit VDM on their first to Seychelles Adoption Process category: Innovators Early Adaptors Early Majority Late majority Laggards
Psychographics Customer demand Most are motivated by need to visit renowned tourist site Lifestyle Some are nature enthusiasts Motives Interests
APPENDIX 10.14 Tubbataha Competitor Analysis
Factors Tubbataha Reefs Competitors
Palawan Philippines Outside Philippines
Coron/Busuanga El Nido Apo Reef Anilao Palau
Product • Scuba diving • Scuba diving • Scuba diving • Scuba diving • Scuba diving • Scuba diving features • Snorkeling • Snorkeling • Snorkeling • Snorkeling • Snorkeling • Snorkeling - May include • Island hopping • Island hopping • Land-based • Island hopping • Island hopping bird watching • Kayaking • Kayaking activities • Kayaking • Kayaking and dolphin watching • Other water sports • Island hopping • Other water sports • Water sports • Cave & other land- • Other water sports • Land-based activities • Land-based activities based activities • Land-based activities • At least 16 dive • 13dive sites • 24 dive sites • • At least 9 dive sites • At least 12 dive sites sites • Liveaboard • Liveaboard or • Liveaboard or • Liveaboard or • Liveaboard • Liveaboard or • Land-based • Land-based • Land-based • Land-based • Land-based • Products are • Products are sold • Products are sold • Products are sold • Products are sold either • Products are sold sold in package either in packages or per activity or in in a package by in a package or per either in a package or by dive boats per activity by either packages by resorts dive boats or activity by either dive per activity by either operators dive operators or and inns resorts operators or resorts dive operators or resorts resorts Services & • Security • Security • Security • Security • Security • Security facilities at • Others • Accommodations, • Accommodations, • Others provided Accommodations, Accommodations, sites provided by communication, dive communication, dive by dive boats communication, dive communication, dive dive boats equipment and equipments and • Accommodations equipments and equipments and paraphernalia, shops, paraphernalia, shops, , communication paraphernalia, shops, paraphernalia, shops, café, spa etc. café, spa etc. café, spa etc. café, spa etc. Operation • Early March to • Year Round • Year Round • Year Round • Year Round • Year Round June
Accessibility • Via boat • Via air, boat or land or • Via air, boat or land • Via air, boat or • Via air, boat or land or • Via air or boat combination depending or combination land or combination depending on the place of origin depending on the combination on the place of origin place of origin depending on the place of origin Pricing • Liveaboard • Package offered by • Tour/ resort package • Shorebased • Tour/resort package, • Liveaboard package Strategy package resorts/tour operators package: USD45- walk-in rates offered by dive offered by dive • USD 100/pax/day 560/day • USD50-200/day operators operators • Liveaboard package • Liveaboard: USD depending on the • USD2,500/pax/trip • USD 790 – USD 1,300/pax/ trip 870/pax/cruise package • Shorebased: 1500/pax/trip • Dive/Entry fee: USD1,250/pax • Dive entry fee USD35/pax • Dive/Entry fee: USD 70/pax USD35/pax
Promotion • Multi-media: • Multi-media: internet, • Multi-media: internet, • Multi-media: • Multi-media: internet, • Multi-media: internet, Strategy internet newspaper advertising, newspaper internet, newspaper advertising, newspaper advertising, • tour agencies’ tour agencies advertising, tour newspaper tour agencies tour agencies websites • Aggressive advertising agencies advertising, tour • Aggressive advertising • Aggressive advertising agencies • DOT promotion • DOT promotion • Aggressive advertising • Aggressive
• DOT promotion advertising • DOT promotion
Strengths Opportunities Brief Diversified products, relatively lower rates, accessible via all modes of Expansion of market, further diversification of products at more affordable Competitors' transportation, availability of land-based facilities: accommodations, rates SWOT communications, shops, café, Analysis Weaknesses Threats Limited biodiversity, not World Heritage Site, crowded, mass-market, Harassment of marine creatures and potential decline in biodiversity due to lack of tranquility, poor/absence of monitoring activities, profit-driven, overcrowding of tourists; tourists may surpass carrying capacity of the area weaker conservation efforts.
APPENDIX 10.15 3.5 TUBBATAHA’S STRATEGIC OPTIONS
The marketing for TRNP is entrusted to the dive operators that operate in the Park. The TPAMB, therefore, has no defined marketing plans for TRNP. Tourism management is kept within the scope of regulating activities in the Park as part of its management objectives. It has been dependent upon dive operators in formulating strategies to expand the market. Identified weaknesses such, the narrow window for tourism operations, and the Park’s remoteness have affected visitations. However, the TPAMB was able to provide some collateral to boost the market’s interest in the Park. And, in spite of the challenges encountered in implementing the Park’s regulations, the TPAMB and TMO are able to maintain a good relationship with the dive operators. Understandably, scuba diving companies operating in TRNP focus their marketing efforts only on scuba divers.
In order to increase visitations and generate more revenue, two strategic options were identified. First: to increase the non-diver visits by penetrating this potential niche market through improved promotions. The response to pilot non- diver expeditions in 2007 was good. However, the limited marketing expertise was a major weakness. Second: revenues from scuba diving tourism must be increased expanding the market. It is believed that by improving the present infrastructure condition in the Park like the mooring system, an increase in the number of dive boat operators and visitors can be expected.
The Department of Tourism has the expertise and mechanism to promote the only purely marine World Heritage Site in Southeast Asia, but for the past many years there appears to be little interest. A much wider market can be reached if the DOT includes TRNP in its marketing initiatives. Among the other identified strategies is to participate in marketing events, to reconstruct the current website to make it more appealing to the market, and to be more aggressive in merchandising souvenir items. The establishment of a membership club for TRNP is also considered as a means of securing, not only the market segment, but revenues as well. Limited funds, expertise, and human resources are some of the obstacles effecting the implementation of these strategies. APPENDIX 10.16
Below are the key points in defining the market segments for SIF:
Vallee De Mai Aldabra SIF Head Office Product • Nature access • Nature access • Coco de mer features for tourist for tourist • Merchandising • Photographic • Photographic of t-shirts, license license books etc. • Lease of shop • Merchandising • Animal adoption scheme • Research reports Lifestyle of • Tourists to • Mostly rich • Scientists and customers Seychelles personalities researchers • Couples and • Nature • Coco de mer families enthusiasts dealers between 30 to • Seasoned • Tour operator 50 years divers
Geographical • Mostly • Mostly • Local and location Europeans Europeans international • <5% Local and residents Americans
Seasonality • Visits are daily • Periodic visit • Visits are – November daily to April
The major market segments are: A. For Vallee De Mai: mass tourist market and B. Aldabra: Niche market of selective eco-tourist, researchers and scientists.
Puerto Princessa Subterranean River National Park : Risk Analysis APPENDIX 10.17 1=low, 10=high
Biodiversity/ Cost/ Environment Accessibility Bubble Size 1-10 1-10 Anilao (LAND) 6,0 8,0 2,0 Puerto Galera (LAND) 4,0 7,0 2,0 Balicasag Is.(LAND) 4,0 6,0 2,0 Apo Is. (LAND) 6,0 6,0 2,0 Apo Reef (BOAT) 7,0 5,0 2,0 Boracay(LAND) 3,0 6,0 2,0 Malapascua(LAND) 4,0 5,0 2,0 Cabilao Is.(LAND) 4,0 5,0 2,0 Tubbataha (BOAT) 9,0 3,0 2,0 Sarangani (LAND) 5,0 5,0 2,0 Mactan (LAND) 4,0 6,0 2,0
TRNMP Market Positioning Anilao (LAND) 10 Puerto Galera (LAND) 9 8 Balicasag Is.(LAND) 7 Apo Is. (LAND)
6 Boracay(LAND)
5 Malapascua(LAND) 0 2 4 6 8 10 4 Tubbataha (BOAT) 3 Sarangani (LAND)
Biodiversity/Environment 2 Mactan (LAND) 1 Apo Reef (BOAT) 0 Cabilao Is.(LAND) Cost/Accessibility APPENDIX 10.18 SEYECHELLES ISLAND FOUNDATION BOARD – POSITIONING EXERCISE
Key Questions SIF (corporate level) Aldabra Valle de Mai Customers Who are the key Dealers/tour guides Cruise ships: couples >50, Tourists to Seych: couples customers? Palm enthusiasts European/USA, very >30,wanting a quieter holiday, Grant givers wealthy. Europeans, high income. What criteria used Scientists/researches Uni research orgs Professional photo to separate them Film Makers Cruise ship visitors (demographics, Rich nature enthusiasts economics, lifestyle Divers, single 30-50 etc)?
Positioning What is the Other global and local Galapagos, Madagascar, All excursion operators and Fond competition? nature based NGO’s, Top dive locations Ferdinand
Positioning in terms of service delivery Manage two WHS sites, Unique, Global significant, Market leader and product? good international WHS, Giant Tortoises, Unique, accessible, serene, reputation, largest dist pristine, extreme natural mystical, WHS Why should the coco de Mai, extensive remoteness customer buy you stakeholder network. and not competition?
APPENDIX 10.19 example of simple forecasting template (using SIF products)
Market Forecast Potential Customers Growth 2003 2004 2005 2006 2007 Coco de Mer Palms 30% 10000 13000 16900 21970 28561 Visitors to Vallee 20% 2000 2600 3380 4394 5712,2 Research groups to Aldabra 10% 100 130 169 219,7 285,61 Other tourist items 50% 500 650 845 1098,5 1428,05
Market Forecast 40000
30000 Other tourist items Research groups to Aldabra Visitors to Vallee 20000 Coco de Mer Palms
10000
0 2003 2004 2005 2006 2007 Market Forecast 40000
30000
Other tourist items Research groups to Aldabra 20000 Visitors to Vallee Coco de Mer Palms Potential Customers
10000
0 2003 2004 2005 2006 2007
APPENDIX 10.20 Marketing Budget 2003 2004 2005 2006 2007 Advertising 6 000 $ 3 000 $ 2 000 $ 4 000 $ 6 000 $ Direct marketing 3 000 $ 3 000 $ 3 000 $ 3 000 $ 3 000 $ Sales promotion 3 000 $ 3 000 $ 4 000 $ 4 000 $ 5 000 $ Coupons & Bundling 1 000 $ 1 500 $ 1 400 $ 2 000 $ 3 000 $ Bundling 1 000 $ 1 500 $ 1 400 $ 2 000 $ 3 000 $ Joint promotions 800 $ 1 400 $ 2 000 $ 3 000 $ 3 200 $ Loyalty programs 1 000 $ 1 500 $ 2 000 $ 1 300 $ 1 000 $ Public Relations (PR) 4 000 $ 7 000 $ 6 000 $ 7 000 $ 9 000 $ Training 2 000 $ 1 800 $ 1 800 $ 1 800 $ 1 800 $ total 21 800 $ 23 700 $ 23 600 $ 28 100 $ 35 000 $
Marketing Costs By Year $40 000
Training $30 000 Public Relations (PR) Loyalty programs Joint promotions $20 000 Bundling Coupons & Bundling Sales promotion Direct marketing $10 000 Advertising
$0 2003 2004 2005 2006 2007
APPENDIX 10.21 SIF Marketing Plan:
B. 1 Basic marketing elements
B.1.1. The Products One of the four elements of the marketing mix is the Product section. It considered an important part of the Marketing Plan and it describes the goods and services that the SIF is offering to its customers.
This Plan provides a list of the unique features of your goods and services and their benefits to our customers.
Vallee De Mai a. Nature access for tourists: This offers access to a unique endemic palm forest of extreme natural beauty and for enjoying its wildlife. All adult tourists pay an entrance fee of USD 15. Locals do not pay to visit the Vallee De Mai. b. Photographic license: Professional photographers and journalist are required to pay an filming fee of USD 1,000 to undertake documentary filming and take photographic pictures of the Vallee De Mai. c. Sale of coco de mer nuts: Some coco de mer palm nuts are collected by the SIF in the Vallee De Mai and sold to tourists and locals as a unique souvenir product. The natural beauty of the coco de mer nut, through its resemblance of the female reproductive part, provides a rare and unique product to be bought as souvenir. The nut cost approximately some USD200. d. Shop rental: The Vallee De Mai has a small tourist gift shop offering a range of tourist items and refreshments to customers. The shop is leased to a private operator at a monthly fee of approximately USD 1,200.
Aldabra a. Nature access for tourists: This offers opportunity of access to environmental enthusiast and nature lovers to this unique atoll of extremely diverse wildlife. All visiting tourists pay a landing fee of USD100 per day and have access to visit a limited number of areas on the atoll demarcated as tourist access zones. b. Photographic license: Professional photographers and journalist are required to pay an filming fee of USD 5,000 to undertake documentary filming and take photographic pictures of the Aldabra atoll. c. Access for research: Aldabra offers a vast arena of opportunity for research of unique species and unspoilt eco-systems. The SIF offers the scientific potential of the Aldabra atoll to scientists and researchers to undertake research project on the atoll. A fee of USD 350 per day is required for payment for accommodation and logistical support of the SIF. d. Sale of souvenir: The research station on Aldabra holds souvenir sales to cruise-ship and other visitors to on a limited product line of Aldabra t-shirts, videos, coffee table books, and post cards, etc.
B. 1.2. SIFs’ customers
Vallee De Mai In 2002 the Vallee De Mai received 55,000 visiting tourists. The figure dropped to some 52300 in 2003 (5 % reduction) and 47,600 in 2004. Of these visitors 80% are from Europeans, from France, United Kingdom, Italy and Germany. Most visitors are between the ages of 30 to 55 years, with children under the age of 12 years old amounting to an average of 3000 for the past 3 years.
It is estimated that a fairly large proportion of the visitors (40%) come either in family group or as couples.
Of the total visitors into the Vallee De Mai some 33% of these undertake their visit through a tour operator, with the other 67% coming either by bus, taxi or in rented vehicles.
In view of the cost involve for tourists visiting Seychelles we estimate that visitors to Vallee De Mai are from the middle to high-income bracket.
Feedbacks from the “Visitors Book” indicate that most visitors visit the site because of its reputation for its uniqueness and the fact that the Vallee De Mai is a renowned tourist site.
Aldabra Aldabra on average receives between 400 and 600 visiting tourists per year in view of the difficulties associated with accessing the atoll. Most visitors are from small to medium size ships that visit the atoll from November to April each year.
The visitors are mostly Americans and Europeans between the age of 40 to 65 years and enjoys visiting islands and destinations renowned for their richness in biodiversity.
More than 80% of the visitors come either in family group or as couples and book their trips through expedition agencies.
Aldabra is always considered in the cruise package for its uniqueness and pristine environment and is recommended to these expedition agencies by local shipping agencies.
Most cruise-ship visitors to Aldabra are from the high-income bracket and like to visit various sites on the atoll to appreciate the sight of the giant land tortoise, large frigate bird colony and extreme natural beauty of the undersea world.
B.2. Marketing Strategy
This section of the plan aims to provide an insight of the SIF market strategy by describing the Foundation’s market positioning, marketing targets, pricing and promotion strategies.
B.2.1. SIF’s market positioning The SIF’s market Positioning refers to the way which customers perceive the organization and its’ products, relative to the competition by answering the following questions: • Who is the brand for (i.e. the Target Group) • What is the competition (i.e. the Competitive Frame) • Why should the customer prefer this brand instead of the competition
Valle de Mai Valle de Mai is a World Heritage site providing leisure and excursion facilities for people visiting the Seychelles. The site has a nature walk and examples of the rare coco de mer palm. The Vallee De Mai shall be positioned as the market leader in nature reserves. The site will be marketed for its unique natural beauty and the mystical palm forest and is conveniently located to cater for a short 40 minute visit and fascinating enough to stay for half a day. Valle de Mai will be portrayed for its reputation as being the Garden of Eden and is one of the few sites in the world where you can see the Coco de Mai palm and the Black Parrot. Attention will be given to the competition from excursion operators, Fond Ferdinand and Curieuse nature reserve.
Aldabra Aldabra is the world’s largest raised coral atoll. It is home the world’s largest giant tortoise population as well as a range of unique wild life such as the Aldabra Drongo, the last flightless bird in the Indian Ocean, the rail, and the Aldabra lily. It is considered a living laboratory for scientists and researchers who wish to observe an untouched, complete ecosystem. Aldabra’s competition includes top dive locations within the Indian Ocean and Galapagos. The atoll will be positioned as a special destination for niche eco-tourism market with the reasons for customer preference marketed as a unique and pristine atoll with diverse wildlife and a world heritage site. With regards to the scientific community, universities will be targeted and the atoll will be positioned as an unspoilt living laboratory with a lot of untapped potential especially on the marine ecosystem. Aldabra will be presented as being a place where post-graduate research can be undertaken where human impact variable is virtual non-existent.
SIF SIF is the organisation responsible for the management of the two World Heritage Sites, Aldabra and Valle de Mai. SIF Head Office looks after the day to day running of the sites as well as the development of merchandising, and the promotion and selling of the Coco de Mer from the Valle de Mai. SIF also sell the wholesale tickets to Valle de Mai. In terms of the merchandising, the main customers are Seychelles tourists, dealers and book shops. For Coco de Mer, the main customers are dealers, tour guides and tourists to the Seychelles. The SIF Head Office will be positioned as a reputable organization of high international prestige with extensive network. It will also be marketed as one offering the widest selection of coco de mer at the lowest price and is the only seller of Aldabra specific merchandise.
Product Positional Matrix - Example
Perceived Engine Power
High
Perceived Safety
Low High
Low
Scoda Toyo ta OPEL Fo rd M ercedes Porsche SA A B BMW
B.2.2 Marketing Objectives: The SIF had proposed the following as its main business objectives for implementation during the next 3 years. Valle de Mai • Maintain 40% of visitors to the Seychelles visiting Valle de Mai and have them spend on average $10 each on merchandise or food at SIF shop. • Have 4 specific research activities at Valle de Mai per year with results being published by end 2005 • Double the number of local school children visiting Valle de Mai by end of 2005
Aldabra • Increase to 6 per year the number of research activities resulting in publication
SIF • Obtain $20 million for a Trust Fund for SIF
With this marketing plan the SIF aims to primarily maintain its market share, especially with regards to tourists visiting the Vallee De Mai. The plan also aims to improve SIF sales at the Valle De Mai by improving the range and quality of merchandise sold to tourists. This would enable the shop to achieve its business objective of getting an added value of USD10 on each item of merchandise sold in the shop.
The SIF also recognise that other market segments like the scientific and research group can be potentially in view of its attractiveness to enhance the reputation of the two World Heritage sites among the scientific community and help the SIF achieve its scientific objectives for species and resource conservation and protection.
Both Vallee De Mai and Aldabra are sites that with potential for further scientific research to be undertaken in view of the richness of its bio-diversity and the potential benefits of science to generate more publicity and interest from both scientific institutions and general public.
B.2.3 Promotion The SIF presently does very little locally and international to actively promote its products and services. Promotion activities are restricted to the occasional publishing of a newsletter, or an exhibition on Vallee De Mai and Aldabra and a few press releases associated with some special events relating to the SIF.
For the purpose of implementing the new business plan for the SIF, the following promotion strategy shall be pursued:
Valle de Mai
The SIF will tender out the design and production of poster and in flight magazine advertisements. The scope shall cover the need to attract couples 30-50 and present the following features of the mystical Valle de Mai: • Unspoilt, • Natural, • Once in a life time excursion, • Safe, • Unique, • Original Garden of Eden, • Grand setting and Cathedral like, • Serene, • Easy to get to and • Not out of the way. Magazines: Air Seychelles (first priority); Qatar Airways; and, Emirates Airline. Poster Placement: Airports (Mahe & Praslin); All hotels; inter-island ferries; Museums; Tourist information bureau.
Articles for in flight magazine: Lindsay Chong Seng and Katy Beaver will write the articles and submit to magazine publishers.
Hotel Greeting nights: SIF representative will talk to hotel managers with the aim of developing a suitable power point presentation with movies and audio. The presentation can be played to hotel guests with no SIF staff present. Rotate visits to hotels by small team of promoters who will take examples of Coco de Mers. Hotels graded 3 stars and above will be targeted.
Maps: SIF will place advertisement in free maps that are given to tourists. Use the advertisement (or part of) that is developed for in flight magazine.
Aldabra Organise and promote a fully 2 week visit to Aldabra for multi discipline researches with the aim of encouraging follow up research visits. Trip to be organised by SIF but paid for by attendees.
Science committee shall develop a letter for e-mailing/mailing to universities that explains the trip and options for research. Send letters to SIF contacts at university, as well as 20 other per country after finding out contact details. Include in mail out an example of a published research document.
This will be a trial and at large cost but potentially generating a large scientific interest. SIF are willing to take a loss of 150,000 Rupees if the trip is not filled but all efforts will be made to break even.
SIF A sub committee has been established to set up a trust fund for SIF. The sub committee has appointed a person with experience in managing a Foundation to raise $20 million to establish the fund. SIF will monitor the progress of this sub committee but will not be involved in its operation.
Effectiveness The SIF intends to judge the effectiveness of your promotion in terms of cost effectiveness. We will use the Seychelles Tourist Bureau airport questionnaire to ask basic questions about Valle de Mai: • Did you visit the Valle de Mai? • Why did you visit the Valle de Mai? • Where did you hear about the Valle de Mai?
SIF also intends to implement the promotions one by one and look at visitor numbers.
Pricing
The pricing policy of the SIF can be classified as followed:
VDM: Access into the Vallee De Mai by tourists is priced at USD15 or 15 as Entrance Fee. The rate for the Entrance Fee was introduced in April 2003 and represented an increase from USD10. The decision for an increase in the Entrance Fee was decided by the Board of Trustees in 2002 in order to maximize revenue for the SIF in anticipation of the declining tourism industry. Our competitors from Curieuse Island Nature Reserve and Cousin Island Nature Reserve charge USD15 and USD25 respectively, as land fee.
As a producer of Coco de mer nuts SIF sells the nut at USD200 for a fully shaped nut and USD100 for a ‘misshaped’ nut. Government under an Act of Law regulates the price for coco de mer nuts. Our competitors from Praslin Development Fund and Environment Trust Fund sell their nuts at the same price. Retailers in the art and craft business sell the shaped nuts to tourist for a price of between USD300 to 450.
The Filming fee USD 1,000 is charged to for journalists and professional photographers undertaking documentaries and other filming or photographic project inside the Vallee De Mai. The SIF may give discounted price to filming groups that agree to provide a promotional slot on the organization as part of the documentary.
Aldabra: Access to Aldabra by tourists is priced as a Landing Fee of USD100 per day. The rate for the Landing Fee was introduced in April 2001 and remains to date. Our competitor the Island development Company charges USD20 or 20 per person as land fee for any tourists visiting the outer islands managed by the company.
The Filming fee USD 5,000 is charged to for journalists and professional photographers undertaking documentaries and other filming or photographic project on Aldabra. The SIF may give discounted price to filming groups that agree to provide a promotional slot on the organization as part of the documentary.
PURCHASING POLICIES
It is important for an operating company to develop a clear purchasing policy in order to manage effectively the resources that it devotes to its purchasing activities. This policy should be made known to all staff. Certain parts of it could be made available to suppliers, for instance in cases where there is a strong policy to develop the local market. In all cases it is recommended that suppliers be made aware of those parts of the company’s purchasing policy, which relate to business ethics. As purchasing activities are not restricted to a single department and can make a significant contribution to the company’s profitability, corporate management rather than the purchasing organisation alone should approve the purchasing policy.
The principal elements of any contract policy should cover:
Nature and extent of the work to be contracted out The critical or non-critical nature of the activity considered for contracting out in relation to the key objectives of the Company The role and responsibilities of the Tender Board Single point responsibility for managing each contract (and contractor or partner)
Contract award to the technically acceptable tender yielding the lowest "life time" cost to the Company Qualification of contractors, suppliers, and tenderers
Governing law for (international) contracts, and the need for legal advice for any deviation from the Company policy
Types of contracts to be preferred for given circumstances
Facilities and services, which may be provided by the Company to contractors
Reference to Shell Group "Business Principles" and "HSE standards"
Prevention of undue influence on the contracting process by Information Brokers
A preference for incentives and bonuses to encourage and reward contractors, rather than guarantees and penalties to prevent under-performance
The extent to which the Company endorses the "Total Procurement" concept
Each contract entered into should be justified commercially in its own right
Furthermore, contract policies usually set out that:
Contractors should be self sufficient and independent; the Company should manage the contract, not the contractor Contracts for the pure supply of manpower effort on an indefinite basis, working alongside Company staff, should be avoided International standards, such as ISO 9000, and EEC regulations, will be adhered to, but with minimum distraction to the Principal Company contracting objectives Regular and consistent contractor and supplier performance monitoring is required
Contractor/supplier strategies. The advantages and disadvantages of multiple sourcing versus single sourcing are:
Multiple sourcing
Advantages: • If, for any reason one contractor or supplier fails to perform, the business can readily be placed elsewhere • Competition can usually be maintained • The Company is protected against exploitation by a single source supplier or contractor • There will be greater flexibility to meet sudden fluctuations in requirements Disadvantages: • Close working relationships with contractors and suppliers will be much harder to establish and maintain • Standardisation will be harder to maintain; varieties will tend to proliferate • Economies of scale may not accrue • There will be increased costs of tendering and evaluation of bids, administration costs of multiple suppliers may be higher • Unsuccessful tenderers may become dissatisfied • HSE standards are difficult to maintain
Single sourcing
Advantages: • Close relationships can be established with contractors and suppliers, leading to effective communication and mutual understanding of needs • The administrative and technical work of repeatedly seeking and evaluating tenders can be avoided • Scheduling can be simplified • Quality appraisal and control costs are reduced • Price reductions may become possible through economies of scale • It may become possible to embark upon long-term cooperative activity, such as quality improvement and process re-engineering, which can bring major long-term benefits in terms of quality, cost reduction and security • HSE standards are relatively easy to enforce Disadvantages: • A single contractor or supplier may be able to use the position to derive undue commercial advantage • The contractor or supplier may become over-dependent on Group business • Technical developments which take place in other parts of the market may be missed • The Company will be vulnerable to major changes in the supplier’s business, such as take-over or liquidation
Sustainable and Ethical Procurement Policy Standard CAG/STAN/AZ2
Issue Date: Executive Summary 1st June 2006 Serco expects its staff and suppliers to have a natural respect for our sustainability and ethical standards in the context of their own particular Authority: culture. The relationships with our suppliers are based on the principle of sustainability and fair Chief Executive, Serco Group and honest dealings at all times and in all ways. Serco specifically expects its suppliers to extend Applicability: the same principles to all others with whom they do business, including employees, sub- Suppliers to Serco Group covering all business contractors and communities. divisions, operating companies and business units This document sets out Serco’s standards which throughout the world and within their own supply we would urge our suppliers to adopt , and which chain. we would encourage them to promote within their own supply chains.
Sustainable and Ethical Procurement Policy Standard – CAG/STAN/AZ2 1
1 Introduction At Serco we take social and environmental factors into consideration alongside financial factors in making decisions on the purchase of goods and the commissioning of services. Our purchasing decisions should where practicable consider whole life cost and the associated risks and implications for society and the environment. Procurement can make a significant contribution to our goals of sustainable economic development and resource minimisation by ensuring that the goods and services we buy consider optimum environmental performance. Procurement has an additional role to play in minimising any risk of social exploitation within the supply chain. We believe that this not only makes business sense, it also has the potential to improve the living and working standards of people around the world.
This policy standard sets out the detailed requirements and minimum expectations of our policy of sustainable and ethical procurement. Specifically, it addresses the expectation that our staff and suppliers have a natural respect for our ethical standards in the context of their own particular culture and that relationships with our suppliers are based on the principle of fair and honest dealings at all times. The same principle of fair and honest dealings must be extended to all others with whom our suppliers do business, including employees, sub-contractors and other third parties and their local communities.
Economic growth, social cohesion and environmental protection go hand in hand. 2 Objectives Sustainable Procurement
Our sustainability objective is to ensure a continuous improvement in procurement decisions measured against delivering sustainable and ethical trading. More specifically, Serco seeks to avoid adverse social and environmental impact in the supply-chain, the reduction of environmental impact from service operations and the purchase of products that meet recognised environmental standards.
Ethical Procurement
Our ethical objective is to ensure that people in the supply-chain are treated with respect and have rights with regard to employment including the rights to freely choose employment, freedom of association, payment of a living wage, working hours that comply with national laws, equal opportunities, recognised employment relationship, freedom from intimidation and to a safe and healthy working environment. 3 Our Commitment
3.1 Sustainable Procurement Standard
3.1.1 Working in partnership
• We will seek out organisations that share our commitment to sound environmental performance and improvement. Where applicable, we will offer assistance to our suppliers in raising their environmental awareness. We will develop partnerships with our
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suppliers and contractors and work together to minimise the environmental and social impacts of our supply chain.
• Sustainability requirements will be considered and where appropriate will be specified in initial tender documentation for both suppliers and contractors, to ensure suppliers and contractors are aware of our environmental and social criteria at an early stage in the tender process.
• Small firms, voluntary and community organisations, social enterprises and ethnic minority businesses are considered members of Serco’s supply chain as they play an important role in the local economy and contribute to social cohesion.
3.1.2 Environmental impact
• Where practicable, we will purchase goods that have a minimal impact upon the environment, both local and global. Factors taken into consideration will include sustainability of resource production, transportation, full life energy/raw material consumption and waste production and percentage recycled content.
• Wherever possible we will consume and purchase less by identifying and eradicating, wasteful practices within our own operation and those operations where we have influence.
• Serco will re-cycle goods at the end of their life, where this is possible and where it is not possible ensure disposal in the most environmentally sound manner.
• We will purchase products and services that meet minimum environmental standards.
• To promote and embed the adoption of sustainable services, Serco will develop and support through appropriate awareness programmes, new methodologies for identifying needs; appraising options; agreeing design and specification; supplier selection; tender evaluation; contract management and supplier development.
3.1.3 Procurement process
• Company buyers should use their purchasing power, where practicable, to influence and encourage suppliers in order to create a more reliable market for environmentally and ethically produced products and services.
• Environmental and social factors shall be considered in the purchasing process. Specifically this includes considering what the product is made from, the product durability, where it is made and by whom, the efficiency of the product during use and the processes involved in its production and distribution, what the disposal requirements are and if it can be reused or recycled.
• We will add sustainability into the procurement cycle: identifying needs; appraising options; design and specification; supplier selection; tender evaluation; contract management and supplier development.
• Sustainable development concepts will be embedded into purchasing functions through training programmes.
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3.1.4 Monitoring and measuring
• We will seek to establish key performance indicators for sustainable procurement where appropriate and monitor and measure the performance of our supply chain against them.
• Where applicable, environmental law is given effect through procurement decisions including international obligations on climate change and sustainable development. We will support national policy and legislation to reduce CO2 emissions, ban ozone-depleting substances and protect biodiversity.
• We will ensure the security of supply of vital goods and services through the early identification of environmental pressures that pose threats to existing supplies, for example, from the elimination of certain substances (such as hazardous chemicals) through regulation.
3.2 Ethical Procurement Standard Serco expects its suppliers to comply with legal requirements and to adopt the following moral principles:
3.2.1 Regulatory compliance
• Suppliers shall comply with all national and other applicable law and regulations. Where the national law and this Standard are in conflict, the highest standards consistent with national law should be applied.
• Where the provisions of law and this Standard are not in conflict but address the same subject, the provision, which affords the greatest protection to people and the environment, should be applied.
3.2.2 Employment
• There is no forced, bonded or involuntary prison labour.
• Workers are not required to lodge ‘deposits’ or their identity papers with their employer and are free to leave their employer after reasonable notice.
• Workers, without distinction, have the right to join or form trade unions of their own choosing and, where a significant proportion of the workforce agree, to bargain collectively. Where the right to freedom of association and collective bargaining is restricted under law, the employer should consider facilitating, and not hindering, the development of legal parallel means for independent and free association and bargaining.
• Workers’ representatives are not discriminated against and have access to carry out their representative functions in the workplace.
3.2.3 Elimination of child labour
• The long-term elimination of child labour should take place in a manner consistent with the best interests of the children concerned.
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• Suppliers should develop or participate in and contribute to policies and programmes that provide for the transition of any child found to be performing child labour to enable her or him to attend and remain in quality education until no longer a child.
• Children and young persons under 18 shall not be employed at night or in hazardous conditions.
• In any event, the course of action taken shall be in the best interests of the child, conform to the provisions of the International Labour Organisation (ILO) Convention 138 and be consistent with the United Nations Convention on the Rights of the Child.
3.2.4 Right to a living wage
• Wages paid for a standard working week meet or exceed national (or, where applicable, local) legal standards.
• In any event, wages should not be paid in kind and should be enough to meet basic needs.
• All workers should be provided with written and comprehendible information about their employment conditions in respect to wages before they enter employment and the particulars of their wages for the pay period concerned each time that they are paid.
• Deductions from wages as a disciplinary measure should not be permitted. Deductions from wages not provided for by national law should only be permitted with the expressed permission (without duress) of the worker concerned. All disciplinary measures should be recorded.
3.2.5 Avoidance of excessive working hours
• Standard working hours must comply with national laws and national benchmark industry standards; whichever affords greater protection to the employee.
• Workers should not on a regular basis be required to work in excess of 48 hours per week and should be provided with at least one day off for every 7-day period on average. Overtime requested by the employer must be voluntary and must not be requested on a regular basis.
• As provided for by ILO Convention 1, these provisions are intended to cover non- supervisory and non-management functions.
3.2.6 No discrimination
• A policy of equality for all should be in place and there should be no discrimination in hiring, compensation, access to training, promotion, termination or retirement based on race, caste, national origin, religion, age, disability, gender, marital status, sexual orientation, religious beliefs, union membership or political affiliation.
3.2.7 Provision of regular employment
• To every extent possible work performed must be on the basis of recognised employment relationship established through national law and practice.
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• Obligations to employees under labour or social security laws and regulations arising from the regular employment relationship should not be avoided.
• Examples include the abuse of labour-only contracting, sub-contracting, or home-working arrangements, through apprenticeship schemes where there is no real intent to impart skills or provide regular employment, or the excessive use of fixed-term contracts of employment.
3.2.8 No harsh or inhumane treatment
• Physical abuse or discipline, the threat of physical abuse, sexual or other harassment and verbal abuse of other forms of intimidation shall be prohibited.
3.3 Safe and Healthy Working Conditions Serco expects its suppliers:
• To provide a safe and healthy working environment bearing in mind international standards, the prevailing knowledge of the industry and of any specific hazards.
• To take adequate steps to prevent accidents and injury to health arising out of, associated with, or occurring in the course of work, by minimising, so far as is reasonably practicable, the causes of hazards inherent in the working practice and environment.
• Provide workers with suitable and sufficient health and safety training, in order that they fully understand the hazards associated with the work activity and environment and the correct practices required to minimise the risks.
• Provide suitable and adequate welfare facilities including toilet facilities, drinking water and food storage where required. Accommodation, where provided, shall be clean, safe and meet the basic needs of the workers.
• To assign responsibility for health and safety to a senior management representative.
3.4 Environment Serco expects its suppliers:
• To have an effective environmental policy, to implement the policy at all levels throughout the company and to include a commitment to continual improvement in environmental performance and prevention of pollution.
• To comply with all environmental legislation, regulations and all local laws which relate to the organisations environmental aspects to facilitate the protection of the environment.
• To have a process that ensures conformity to local regulations, including those relating to the reduction, reuse and recycling of waste and the elimination and safe disposal of dangerous materials.
• To identify a person within its business who has responsibility for environmental compliance issues and to be able to demonstrate that responsible personnel are adequately trained in environmental matters.
• To routinely identify risks of adverse environmental impact associated with their operations and where operations with identified risks are planned to ensure they are
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carried out under controlled conditions with the objective of minimising potential adverse impact upon the environment. 4 Principles We will use the following best practice principles to guide the implementation of our policy:
4.1 Principle 1: Working together We will: • work collaboratively with suppliers in pursuit of this standard; • guide relationships by the principle of continual improvement; • welcome rather than penalise suppliers identifying activities that fall below this standard (undertaken by themselves or sub-contractors) and who agree to pursue their aspirations; • consider a similar ethical trading standard as a reasonable alternative where suppliers are already working towards sustainability.
4.2 Principle 2: Making a difference We will, and we expect our suppliers to: • use an environmental and social risk-based approach to the implementation of this standard; • focus attention on those parts of the supply chain where the risk of not meeting this standard is highest and where the maximum difference can be made with resources available.
Serco’s suppliers should: • be prepared to demonstrate the basis of their approach with regard to the above.
4.3 Principle 3: Awareness raising and training We will, and we expect our suppliers to: • ensure that all relevant people are provided with appropriate training and guidelines to implement the requirements of this standard.
4.4 Principle 4: Monitoring and independent verification We will: • recognise that implementation of this standard may be assessed through monitoring and independent verification, and that these methods will be developed as our understanding grows.
We will expect our suppliers to: • provide Serco or its representatives with reasonable access to all relevant information, premises, and workers (through interviews) and co-operate in any assessment against this standard – using reasonable endeavours to ensure that sub-contractors do the same. • use reasonable endeavours to provide workers covered by this standard with a confidential means to report to the supplier failure to observe its requirements.
4.5 Principle 5: Continuous improvement We will, and we expect our suppliers to:
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• apply a continual improvement approach in agreeing schedules for improvement plans with suppliers not meeting this standard; • base improvement plans on individual case circumstances; • not use this guideline to prevent suppliers from exceeding this standard.
Ultimately, Serco will not do business with a supplier where serious breaches of this standard are identified and where the supplier consistently fails to take corrective action within an agreed timescale. 5 Responsibility and Authority
This policy standard is issued under the authority of the Chief Executive, Serco Group plc. Responsibility for implementation of this policy standard is set out below. • Responsibility for the achievement of this policy standard rests with the Executive Team.
• Divisional Chief Executives are responsible for implementing the policy standard, monitoring its implementation in the everyday activities of their division and report to their divisional board.
• Managers are responsible for implementing the policy standard, monitoring its implementation in the everyday activities of their operations and report to their contract board.
• The Corporate Assurance Group is responsible for reviewing the policy standard and ensuring that it is kept up to date with changes in legislation. It is also responsible for the development of guidance and training on the implementation of the policy standard and for providing appropriate reports to the Serco Group board.
6 Evidence of Compliance
The Corporate Assurance Group will carry out regular monitoring of the implementation of sustainable procurement commitments and ethical standards by business units to enable us to identify trends and ensure that environmental and social factors are being considered in procurement decisions.
To demonstrate compliance with this policy standard, each division is required to provide access to documentation and records for audit purposes:
• Serco Group plc o Sustainable and Ethical Procurement Policy Standard (this document) o related policy statements and procedures o internal audit reports • Divisions o Procedures o training material o audit/review records • Business units/operating contracts
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o audit/review records 7 Guidance
Additional guidance and details of relevant legislation is available from the following sources:
UK websites
www.sustainable- DEFRA development.gov.uk Guidance on procurement and estate management can be found on the framework for sustainable development on the government estate.
OFFICE OF GOVERNMENT COMMERCE www.ogc.gov.uk Guidance on EC public procurement rules and best practice including OGC/Defra note on environmental issues in purchasing.
www.idea.gov.uk IMPROVEMENT AND DEVELOPMENT AGENCY Guidance for public sector and helpdesk advice on sustainable procurement for local government. ([email protected])
CHARTERED INSTITUTE OF PURCHASING AND www.cips.org SUPPLY (CIPS) The professional body for purchasing and supply chain management. www.environment- agency.gov.uk ENVIRONMENT AGENCY Legislation and good practice approach.
INTERNATIONAL INFORMATION
ENVIRONMENTAL PROTECTION AGENGY (US) www.epa.gov Environmentally preferable purchasing. Includes purchasing guides from the US EPA covering food service-ware, copiers, cleaners, carpets, electronics and meetings.
INTERNATIONAL COUNCIL FOR LOCAL www.iclei.org ENVIRONMENTAL INITIATIVES (ICLEI) Information on ICLEI’s international procurement initiative and a green repurchasing good practice guide.
1st June 2006 Authority: Chief Executive, Serco Group plc © Copyright Serco Group plc APPENDIX 10.24 PROCUREMENT STRATEGY
YORKSHIRE DALES NATIONAL PARK AUTHORITY PROCUREMENT STRATEGY Introduction The Yorkshire Dales National Park is one of 12 National Parks in England and Wales. The National Park, most of which is privately owned, occupies an area of some 1762 km of mainly upland countryside, part of the central Pennines chain of hills which runs up the spine of Northern England. A small part of the National Park lies in the county of Cumbria, most is within the county of North Yorkshire. The National Park was designated in 1954 and is now administered by the Yorkshire Dales National Park Authority.
The National Park Authority has two statutory purposes, "to conserve and enhance the natural beauty, wildlife and cultural heritage" and "to promote opportunities for the understanding and enjoyment of the special qualities of the park". In carrying out these purposes, the Authority has a duty to "seek to foster the economic and social well being of local communities". It is also the local planning authority.
The Authority is a relatively small Public Sector organization with an average annual budget of £7.5m and an annual spend on supplies/services of £2.2m. This strategy applies to all of that spending.
Purpose To promote the delivery of best value supplies/services by the most appropriate procurement route thereby ensuring that value for money is obtained.
To set out a clear, corporate framework for best value procurement, which runs alongside our financial regulations.
The role of procurement within the Authority will: • Apply a consistent, corporate and collaborative approach across departments • Encourage collaboration with other authorities to deliver best value services and value for money • Encourage joint procurement initiatives with other authorities, where feasible, to secure economies of scale • Support fair employment terms • Support environmentally sound provision • Continue to provide a sound competition policy, which will provide best value and quality
Methodology The Authority has developed a procurement mechanism which sets out its detailed procedure for procuring goods and services, by defining: • Financial thresholds for purchasing goods and services and by what method • The Authority’s standard terms and conditions of contract - refer to Contracts Manager • Procedures for opening tenders, evaluating them and letting contracts • Relevant matters to take into account in specifications and tender evaluation
Procurement objectives for the Authority are: • To purchase goods and services from suppliers who will provide best value for money • To work towards e-procurement • To purchase goods and services from suppliers whose environmental policies and practices are sound (see section on Green Procurement below) • To continue to employ and encourage local, small and medium size enterprises to bid for the Authority’s contracts • To secure its purchase of goods and services as quickly and efficiently as possible • To use, where relevant, the collective bargaining power of the Regional Centre of Excellence to secure high value purchases - refer to Contracts Manager • To comply with all legal requirements and relevant government guidelines
The Senior Management Team will take responsibility for ensuring that the Authority's procurement objectives are achieved. Action plan – the Authority will achieve these objectives by: • Ensuring that relevant training on procurement is available to all with purchasing responsibility • Monitoring and reporting on its letting of contracts so that a clear picture of spend across budgets is available • Ensuring that order and contract documentation is available for audit/review purposes • Using the Authority’s external Procurement Advisors where in-house expertise is not available - refer to Contracts Manager • Making use of select lists, where feasible, that have been established by other authorities in the region • Actively promoting collaboration with other authorities • Clearly specifying its requirements, encouraging competition, and awarding contracts based on clear criteria which are specified in advance
Good Practice The Authority subscribes to guidance issued by the Government on the principles of good procurement, namely: • The procurement process should give the authority sufficient information to form a view of potential service providers’ competence but without placing undue burden on them; • Potential suppliers/service providers should understand clearly from the outset what service standards are expected. They will be provided with adequate, accurate and timely information at all the relevant stages of the procurement process; • All potential suppliers/service providers will be subject to the same requirements to ensure fair competition and be treated equally throughout the procurement process; • Care will be exercised to avoid taking too narrow a view of how the service might be delivered as this may limit the options and deter potential providers; • In order to be able to demonstrate that procurement has been undertaken in an open and transparent manner, the Authority will ensure that bidders are fully aware of the basis for bid evaluation and that all stages of the procurement process can be audited satisfactorily with reference to the Authority’s procurement strategy and financial regulations which are made available to all bidders
Competitive Policy The authority makes no assumption on the best method for supply/service provision. Its policy is to procure contracts through open competition based on the Authority’s procurement objectives. Existing partnerships and/or contracts are not exempt from the competition requirement and will be reviewed regularly (at least every 3 years) to assess whether they deliver Best Value/Value for money or whether changes should be made.
Green Procurement The Authority aims to minimise the environmental impact of its purchases/procurement through rigorous use of the 4 R’s and has entered into an agreement with Re-cycling action for Yorkshire (RAY) to assist in this process. RAY will provide information on re-cycled products/services and this guidance should be sought before any purchase is made.
Reduce – by only purchasing new goods that are absolutely necessary, (i.e. when it is not possible or viable to re-use or repair goods already purchased. Re-use – by purchasing products, where possible, that can be re-used many times rather than disposable items Repair – by purchasing, where possible, products that have been designed and manufactured to allow for the repair and replacement of individual parts. Recycle – by purchasing, where possible, products that are made from recycled materials, and/or that may be recycled themselves
The Authority will seek to ensure that in all procurement the environmental aspect is taken into account as an essential and integral part of the contract. This will entail specification writing, tender evaluation criteria and contract conditions which give adequate importance to the environmental dimension.
Risk Management Risk management of contracting with suppliers with no track record will be explored. This will ensure, for instance, that suppliers without long-term experience but demonstrating capability will not be ignored. In these circumstances the need to demonstrate financial and economic standing by requesting for three years final accounts may be reviewed in order to introduce to some flexibility and to avoid discriminating against smaller and new suppliers.
20 November 2006 I
NFNPA 126/06 Annex 1
NEW FOREST NATIONAL PARK AUTHORITY
STANDING ORDERS AS TO CONTRACTS
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INDEX
Section Item Page
1. Introduction 3
2. Definitions 3
3. Delegated authority 4
4. Exceptions 4
5. Procurement rules 5
6. Disaggregation 5
7. Selection of suppliers, consultants and 5 contractors
8. Procurement rules for contracts 6
9. Mandatory requirements for all contracts 8
10. Mandatory contract clauses 8
11. Procurement procedures 9
12. E-procurement 12
13. Contract monitoring 13
14. Suspension of Standing Orders 13
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1 Introduction
1.1 The Authority has a statutory duty to make Standing Orders for the procurement of goods and execution of works in order to achieve competition and to regulate procedures for inviting tenders.
1.2 These orders are intended to provide rules and procedures to be followed in order to obtain best value, comply with the Law which governs spending and to safeguard public funds as well as to protect the interests of individuals involved in procurement. Contract Standing Orders provide the framework for the procurement of all works, supplies and services and must be complied with by all members, officers, consultants and other external agents appointed to act on behalf of the Authority in procurement matters.
1.3 Contract Standing Orders apply to all external procurement by the Authority regardless of the source of funding.
1.4 These Contract Standing Orders should be read in conjunction with Financial Regulations and any policies adopted by the Authority regarding sustainability, environmental, economic, equality and social issues.
1.5 Contract Standing Orders will be monitored and reviewed annually by the Authority’s Chief Finance Officer and Monitoring Officer.
2 Definitions
In these Standing Orders the following definitions shall apply:-
Authority New Forest National Park Authority
Chief Executive Head of Paid Service
Committee A meeting of any Committee or Sub- Committee of the Authority
Contract A document setting out the terms and conditions for the supply of goods (supplies), works or services (as appropriate) as agreed between the Contractor and the Authority
Contractor Any organisation external to the Authority seeking to supply goods, works, or services
Director Head of a Directorate and the term ‘relevant Director’ means the Director responsible for the Service Area, the subject of the Contract
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Member Member of the Authority
Supervising Officer Officer nominated to supervise the Contract on behalf of the Authority
3 Delegated authority
3.1 The Director has ultimate responsibility for all contracts awarded by their Directorate. Authority to enter into contracts and make decisions under these Contract Standing Orders is delegated in accordance with the Authority’s Scheme of Delegations and within the Code of Practice for the ordering and payment of goods and services.
3.2 Contract Payments must be authorised within the financial limits set out in the Code of Practice for the ordering and payment of goods and services, and the approved budget, and comply with Financial Regulations.
4 Exceptions
4.1 The procurement rules in these Standing Orders do not apply where:
4.1.1 the Authority is to procure works, supplies or services through a Consortium or similar body, provided the Authority is a member of the Consortium and that body’s own procurement rules are adopted; 4.1.2 work is carried out under an Agency arrangement, which includes a provision that the Standing Orders of the Principal Authority will apply to any procurement; 4.1.3 award of further work under an existing contract for works, services or supplies of goods is made; for this provision to apply, the Chief Executive will need to be satisfied that exceptional performance and value for money has been demonstrated. The further work should not exceed 50% of the original contract sum or £100,000 whichever is the lower and not exceed two years in duration; 4.1.4 an existing contract for professional service is to be extended, and the Chief Executive is satisfied that value for money is being achieved; 4.1.5 the goods or materials are proprietary items, or their prices are controlled by trade organisations or government order, or they are sold at a fixed price only provided that in each of these cases there is no reasonable satisfactory alternative product; 4.1.6 a contract is awarded for the completion of work where a contractor becomes insolvent or, the employment of an existing contractor is determined. Both cases require the approval of the Chief Executive;
4 I
4.1.7 the procurement of works or services are required urgently and there is insufficient time to advertise the contract in the appropriate trade or professional journal; the Chief Executive may authorise the selection of the appropriate number of suppliers for invitation to tender from the Standing Approved List of Suppliers maintained by nearby local authorities or central government.
5 Procurement rules
5.1 All procurement must conform with the current EU Procurement Directives and other legislation covering procurement by Public Bodies; this includes Local Government Act 1999 (Best Value), Local Government Act 2003, Local Government (Contracts) Act 1997 and the Public Contracts Regulations 2006.
5.2 The Treaty of Rome and the EU Directives on procurement require that all procurement, irrespective of value, is carried out in such a way as to ensure the non-discriminatory treatment of all competing suppliers. The Public Contract Regulations 2006 require that all works, supplies and service contracts above certain thresholds must be advertised in the Official Journal of the European Union.
5.3 The EU procurement thresholds are published on the website of the Office of Government Commerce and are revised annually; as at 1 January 2006 these are as follows:
£ Works 3,611,319 Supplies 144,371 Services 144,371
6 Disaggregation
6.1 Procurement must not be disaggregated to reduce individual contract sums in applying the procurement rules.
7 Selection of suppliers, consultants and contractors
7.1 The following procedures apply where contracts for the supply of works, services or goods and materials are required by the Authority.
7.2 Where procurement is undertaken on behalf of the Authority by another local authority, that local authority’s own Standing Orders as to Contracts and pre-qualification checks may be adopted (see paragraph 4.1.2).
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7.3 For all contracts, the estimated value of which is between £25,001 and the EU threshold, the Chief Executive may make an exception under paragraph 4.1.7 and select for tender the appropriate number of suppliers from the Standing Approved Lists of Suppliers maintained by nearby local authorities or central government, instead of public advertisement of the contract.
Works and contracts for services (other than consultancy) and supply of goods or materials:
7.4 For works, services (other than consultancy) and supply contracts with an estimated value above £25,000, the contract must be advertised in one or more local newspapers or relevant trade journals. The notice inviting contractors to indicate their interest in tendering for the work is to include details of the nature and purpose of the contract.
7.5 Where the proposed contract is estimated to be above the minimum EU limit, the notice must also be published in the Official Journal of the European Union (provided always that the Official Journal notice appears before the notice in the newspaper or trade journal).
7.6 Before selecting the contractors to be invited to tender or quote, based on the risks involved in the contract, appropriate pre-qualification checks must be undertaken to determine the contractor’s ability to carry out the contract. This applies irrespective of the value of the proposed contract.
Consultancy Services
7.7 For consultancy service contracts with an estimated value above £25,000, the contract must be advertised in one or more of the relevant professional journals.
7.8 Where the proposed contract is estimated to be above the minimum EU limit, the notice must also be published in the Official Journal of the European Union.
7.9 The selection of consultants to be invited to quote or tender for consultancy work must include appropriate risk based pre-qualification checks, to include professional competence and professional indemnity insurance. This applies irrespective of the value of the proposed contract.
8 Procurement rules for contracts
8.1 The table below provides a summary of the rules to be followed, based on the estimated contract value. It is an overriding principle in respect of the letting of any contract of whatever value, that the Authority and its officers must be able to demonstrate value for money and non-discriminatory treatment of suppliers.
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Works Supplies Requirements Procedure to Selection of and follow contractors Services Up to £5,000 Up to At least 1 Determine Any relevant £5,000 written specification; professional or trade quotation list/source, or obtained obtain at least 1 Other local quotation authority/public body lists of accredited suppliers £5,001- £5,001- At least 3 Determine Any relevant £25,000 £25,000 written specification: professional or trade quotations list/source, or obtained obtain 3 Other local quotations authority/public body lists of accredited suppliers £25,001 to £25,001 to At least 3 Prepare Advertise in one or EU threshold EU formal tenders specification; more local papers threshold obtained and/or relevant obtain at least 3 national journals. tenders. Or, Selection from approved local authority/public body lists of accredited suppliers Organisations expressing an interest to the advert must be pre-qualified to the standards of the approved list prior to inviting to tender. Above EU Above EU At least 5 Follow EU tender In accordance with EU threshold threshold tenders procedure Regulations sought.
The tender process must comply with the EU Directives
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9 Mandatory requirements for all contracts
9.1 The following are mandatory for every contract let by the Authority:
i) The Authority must have a legal authority to enter into the contract.
ii) An accurate and up to date estimate must be prepared for all contracts.
iii) Adequate budgetary provision must exist for the provision of these goods, works or service.
iv) All tenders, quotations, orders and contracts for procurement must be based on a specification.
v) All contracts must be in writing. As a general rule, a standard form of contract must be used where relevant. The Authority’s official order is a form of contract.
vi) A performance bond must be provided for all works of £100,000 or more. The value of the bond shall generally be 10% of the contract sum.
vii) A TUPE statement must be included where applicable in consultation with the Director of Corporate Services.
10 Mandatory contract clauses
10.1 All contracts must include clauses on the following topics:
i) Termination in the event of the appointment of a liquidator or receiver, or failure of the contractor to perform his obligations under the contract.
ii) Cancellation in the event of Canvassing or Corrupt Practices.
iii) Prohibition of Assignment without the prior consent of the Authority.
iv) Avoidance of Restrictive Practices.
v) Insurances; the Authority’s current standards are:
£10million Public liability (for each and every claim); £10million Employer’s liability. Policy to include an indemnity to Principal’s clause; For services, Professional Indemnity cover to a level commensurate with the level of risk, in accordance with guidance from the relevant professional body. As a guide, the level of cover required will normally be in the range £500,000 – to £5million.
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Where it is considered that the levels are not commensurate with the risk, they may be varied with the agreement of the Chief Executive.
vi) Freedom of Information and Data Protection.
vii) Confidentiality.
viii) Liquidated and Ascertained Damages (for works of £100,000 or more).
ix) Provision for compensation in the event of default by the contractor.
x) Tender evaluation criteria including a price to quality split.
xi) Health and Safety.
xii) Social considerations in respect of discrimination legislation (e.g. Race Relations Act, Age Discrimination legislation).
11 Procurement procedures
Evaluation model
11.1 Where the evaluation criteria include both price and quality, the model to be used for the evaluation must be agreed by the Director at the commencement of the procurement.
11.2 The criteria used in the evaluation model may include environmental, economic, social and other strategic objectives, provided these criteria are not anti-competitive.
Receipt of quotations and tenders
11.3 Quotations must be in writing and sent to the Head of Office Services, who will maintain a record of all quotations received.
11.4 Tenders must be submitted in sealed envelopes endorsed with the details of the relevant tender, and addressed to the Chief Executive.
11.5 A Form of Tender Opening must be completed by the Supervising Officer; tenders must be date stamped on receipt and kept secure until the appointed opening time.
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Opening of tenders 11.6 All tenders must be opened at the same time by the Chief Executive with at least one other officer (normally the supervising officer) present. The Form of tender opening will be completed in full at the time and retained for a period of five years. 11.7 Where TUPE applies, further guidance should be sought from the Human Resources Manager. 11.8 Tenders received after the closing date and time will not be accepted and must be returned to the tenderer. 11.9 Where less than the requisite number of quotes or tenders is returned the Supervising Officer must decide whether a competitive price has been obtained and report to the Chief Executive. Where it cannot be demonstrated that a competitive price has been achieved then the contract must be re-tendered. 11.10 All tendered contracts shall be recorded in a register held by the Chief Executive and open for inspection. Evaluation of quotations and tenders 11.11 The arithmetic accuracy of quotations and tenders and reasonableness of any prices must be checked by the Supervising Officer. 11.12 For standard forms of contract the relevant contract rules for the treatment of errors will apply. For non standard forms of contract: where an arithmetic error is found in the most favourable tender, the tenderer must be required to stand by their quotation or tender or withdraw. 11.13 The Supervising Officer for the contract is responsible for carrying out the tender evaluation. The results must be checked by another independent officer. The evaluation results must be recorded in writing and retained for five years. 11.14 No qualified quotations or tenders may be accepted. 11.15 The Supervising Officer may clarify the quotation or tender prices with a tenderer provided all communication is by letter or e-mail and retained with the contract files.
Acceptance of quotation or tender
11.16 A quotation or tender may be accepted if it is:
within the approved budget, and meets all other tender requirements, and is either the most financially beneficial to the Authority (price only evaluation), or has the highest score (price/quality evaluation).
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11.17 Where quotations or tenders do not meet the criteria in paragraph 11.16, the following actions must be adopted:
Issue Evaluation Actions Required Accept tender Price only evaluation Approval from Chief Executive and other than lowest, Chief Finance Officer and within budget Retain a formal written record of reasons Accept tender with Price and quality Approval from Chief Executive and other than highest evaluation Chief Finance Officer score and within budget Retain a formal written record of reasons Most favourable Price only evaluation Request supplementary estimate tender up to 10% And or virement in accordance with above budget Price and quality Financial Regulations; evaluation Or Negotiate amended design or specification with the most favourable tenderer
Approval from Chief Executive and Chief Finance Officer
Retain a formal written record of all communications with tenderer. Most favourable Price only evaluation Review and reduce specification tender in excess of And and invite the three lowest 10% above budget Price and quality tenderers to retender evaluation Or Undertake new tender process on revised specification Or Consult Chief Executive and Chief Finance Officer for another course of action or agreement for virement or supplementary estimate
Disclosure of tender results and notifications
11.18 The successful tenderer should be notified initially of the intention to award the contract before the unsuccessful tenderers are notified. All notifications must be in writing and also disclose the full list of tenderers, in alphabetical order, and a list of tender sums in descending order.
11.19 For contracts advertised in the European Journal, the notice of award of the contract must be submitted and the rules relating to any appeal period followed.
11.20 All contracts awarded must be reported on the Authority’s website.
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Form of Contract
11.21 The conditions of contract must be either:
The National Park Authority’s own formal order form, or The National Park Authority’s own contract conditions, or An industry standard form of contract (for example JCT or ICE Form of Contract).
In all cases, all documents must be approved initially by the Authority’s own legal advisor.
11.22 All contracts must be in writing; the Authority’s own formal order form is a contract.
11.23 Contracts must be signed or sealed prior to any supply, service or works commencing.
11.24 Where a contract is provided by a supplier, all documentation must be checked and approved by the Authority’s legal advisor prior to signature or sealing.
11.25 A contract Register will be maintained by the Authority and contain the following details:
contract name and value name of company or individual date contract awarded, start and completion dates exceptions to Standing Orders as to Contracts pre-defined scope for extension of contract.
Signing and sealing of contracts
11.26 Contracts with a value in excess of £100,000 must be under seal. This provides a 12 year limitation period for actions to be taken arising from breaches of obligations under the contract (Limitations Act 1980). Contracts not under seal have a six year limitation period. The affixing of the seal shall be attested by the Chief Executive or other officer authorised by her for this purpose.
11.27 Where a contract is not made under seal it must be signed by the Chief Executive or other officer authorised by her for this purpose, or by two officers both of whom are authorised by the Chief Executive for this purpose.
12 E-procurement
12.1 Where an e-procurement system is adopted by the Authority, any associated new procedures must adhere to the same legal and policy obligations that govern all public procurement. E-procurement must
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comply with the rules of the European Commission and the Government’s Value for Money Policy.
12.2 The European Commission (EC) Consolidated Directive (2004/18/EC) supports the adoption of e-procurement. The new provisions on e- procurement cover the following areas:
electronic reverse auctions (e-auctions) dynamic Purchasing Systems for regularly purchased goods and systems rules applicable to communication requirements relating to equipment for the electronic receipt of tenders, requests to participate and plans and projects in design contests.
13 Contract monitoring
13.1 All contract documentation, including quotations and tenders, specifications, variations and exemptions to Standing Orders as to Contracts, must be retained in accordance with the Authority’s records retention policy.
13.2 It is a disciplinary offence to fail to comply with these Contract Standing Orders.
13.3 The Authority’s Chief Finance Officer and the Monitoring Officer monitor compliance with these Standing Orders in accordance with their statutory responsibilities and to ensure good corporate governance.
13.4 Employees have a duty to report breaches of these regulations to their Director, who will report this to the Chief Finance Officer and the Monitoring Officer.
14 Suspension of standing orders
14.1 Any clause within these Standing Orders may be waived in special circumstances provided this does not lead to a breach of EU Regulations.
14.2 Any request for a waiver must be in writing and clearly identify the reasons for the request. A copy of the waiver must be entered in the register held by the Chief Executive and be open for inspection.
14.3 For proposed contracts below £25,000 the approval of the Service Director and the Chief Finance Officer are required; for contracts between £25,001 and the EU threshold, the approval of the Chief Executive, in consultation with the Chief Finance Officer, is required.
14.4 Any proposal to suspend Standing Orders for contracts over the EU threshold will require the approval of the Authority.
13 APPENDIX 10.26 Standard Purchasing Procedure Summary
Goods and Services Procurement Procedure Purchase Options
No purchase order required $2,000 or less Competition not required Credit Card can be used Department Purchase Order
Over $2,000 to $5,000 Competition not required. Department Purchase Order
Competition obtained by Procurement Services. Minimum 3 quotes Contract Over $5,000 to $30,000 (including two minority sources) Department Purchase solicited by phone, fax, or unsealed Order bid. Advertising required ??
Formal Tender Process required. Competition obtained by Procurement Over $30,000 to $50,000 Services. Minimum 3 Tenders Contract submitted (including two minority sources).
Formal Tender Process required. Competition obtained by Procurement Services. Minimum 3 Tenders Over $50,000 submitted (including two minority Contract sources). Approval to award contract required by Tender Board
UK Public sector standard purchasing procedures summary
Works Supplies Procedure to Selection of and Requirements follow contractors Services Any relevant Determine professional or specification; trade list/source, At least 1 written Up to £5,000 Up to £5,000 or other local quotation obtained Obtain at least 1 authority/public
quotation body lists of accredited suppliers Any relevant professional or trade list/source, Determine or £5,001- £5,001- At least 3 written specification: Other local £25,000 £25,000 quotations obtained authority/public Obtain 3 quotations body lists of
accredited suppliers
Advertise in one or more local papers and/or relevant national journals. Or, Selection from approved local Prepare authority/public specification; body lists of £25,001 to £25,001 to At least 3 formal accredited EU threshold EU threshold tenders obtained Obtain at least 3 suppliers
tenders. Organisations expressing an interest to the advert must be pre-qualified to the standards of the approved list prior to inviting to tender. At least 5 tenders sought. In accordance Above EU Above EU Follow EU tender with EU threshold threshold procedure The tender process Regulations
must comply with the EU Directives
S M A L L B U S I N E S S E S
Guidance on preparing a HE A LT H & SAFETY POLICY DO C U M E N T for small firms
This guidance contains an outline health and safety policy statement, which you can complete and use as a way of complying with the law. The outline statement is aimed at small firms but larger organisations could also use it within individual workplaces or departments. 2
Int ro d u c t i o n
What is a health and safety policy statement? When and how should they do it? Your health and safety policy statement sets Your policy statement should describe your out how you manage health and safety in your arrangements, ie the systems and procedures or ganisation. It is a unique document that shows you have in place for ensuring employees’ who does what; and when and how they do it. health and safety.
This is an example of a policy statement that You may wish to refer to other documents, you can use, fill in and keep in your workplace. eg works’ rules, safety checklists, training Ho w e v e r , you do not have to use this document programmes, emergency instructions, etc. or format. You are free to rec o r d and store the All employees may not need to see all the in f o r mation in any form you choose. This forma t other documents, but they must see the policy gives you an idea of the kind of information you statement itself. need to rec o rd . How often do I need to revise the policy statement? Why do I need a health and safety policy statement? It should be reviewed and possibly revised in the The health and safety policy statement is your light of experience, or because of operational or starting point to managing health and safety in or ganisational changes. It is useful to review the the workplace. By law, (Health and Safety at policy regularly (eg annually). Work etc Act 1974 section 2(3)) if you employ five or more people you must have a written Do I have to do anything else? health and safety policy. This contains your Yes, you have other legal duties under other statement of general policy on health and safety legislation. In particular, under the Management at work and the organisation and arrangements of Health and Safety at Work Regulations 1999, for putting that policy into practice. you have to assess the risks arising from your work activities and record the significant findings Writing a health and safety policy statement is (you can cros s - r efer to page 5 of this document). mo r e than just a legal req u i r ement – it is your You also have to record your arrangements for commitment to planning and managing health health and safety (you can use this document to and safety. It is the key to achieving acceptable do that). Depending on your type of work, there st a n d a r ds, reducing accidents and cases of work- may be other specific legislation that will apply. related ill health and it shows your employees that you care for their health and safety. REMEMBER: What you write in the policy has to be put into practice. The true test Who should do what? of a health and safety policy is the actual With very few exceptions, the responsibility for conditions in the workplace, not how well health and safety rests on you as an employer. the statement is written. However, many day-to-day tasks may be delegated. Your statement should show clearly How to use this guidance how these tasks are allocated, but remember, This guidance is split into three parts. It contains you will still have ultimate responsibility. a statement of general policy based on your legal You should consult your employees (through duties under the Health and Safety at Work etc safety representatives, if you have any) about Act 1974. Then you can rec o r d your orga n i s a t i o n a l the policy statement. Everyone should be able responsibilities and your arrangements to ensure to see from the policy statement exactly who is the health and safety of your employees. Notes responsible for different things, such as advice, ar e included alongside each section to help you. reporting an accident, and first aid. Some useful publications are listed in the notes and at the end of this guidance. 3
Health and Safety Policy Sta t e m e n t
Health and Safety at Work etc Act 1974 This is the Health and Safety Policy Statement of
(name of company) Our statement of general policy is:
● to provide adequate control of the health and safety risks arising from our work activities; ● to consult with our employees on matters affecting their health and safety; ● to provide and maintain safe plant and equipment; ● to ensure safe handling and use of substances; ● to provide information, instruction and supervision for employees; ● to ensure all employees are competent to do their tasks, and to give them adequate training; ● to prevent accidents and cases of work-related ill health; ● to maintain safe and healthy working conditions; and ● to review and revise this policy as necessary at regular intervals.
Signed
(Employer)
Date Review date 4 R E S P O N S I B I L I T I E S
Res p o n s i b i l i t i e s
Note 1 Overall and final responsibility for health and safety Your name must be inserte d 1 is that of he r e. As the employer (ie sole tr a d e r , senior partner or managing director) you have overall responsibility for health and safety.
Note 2 Day-to-day responsibility for ensuring this policy is If you are not always there, or 2 put into practice is delegated to do not have time to manage on a day-to-day basis, you can delegate this role to someone else, eg direc t o r , manager or su p e rv i s o r . You will need to en s u r e that they keep you fully in f o r med of health and safety To ensure health and safety standards are maintained/ matters – it will still be your 3 im p r oved, the following people have responsibility in overall res p o n s i b i l i t y . the following area s Note 3 You may delegate functions to Name Responsibility people within your orga n i s a t i o n , either by specific areas within the workplace or by topic. You should include their specific responsibilities in their job description (if they have one). You must also ensure that they ar e competent to underta k e their health and safety responsibilities and have adequate res o u r ces to enable them to do their job prop e r l y . It is important that responsibilities are clearly set out – this will make sure that if th e r e are any health and safety co n c e r ns, they can be rep o rt e d to the right person, so they can be dealt with. You may wish to insert a diagram or chart showing your management struc t u re / arr a n g e m e n t s . All employees have to: Note 4 4 ● co-operate with supervisors and managers on Employees have legal health and safety matters; responsibilities to take care of ● the health and safety of not interfere with anything provided to safeguard themselves and others, and to their health and safety; co-operate with you to help you ● take reasonable care of their own health and comply with the law. safety; and Eq u a l l y , if employees have any ● report all health and safety concerns to an appro- co n c e r ns over health and safety issues, they should be priate person (as detailed in this policy statement). clear about whom they should tell, so that the concerns can be addres s e d . A R R A N G E M E N T S 5
Health and safety risks arising from our work activities
● Risk assessments will be undertaken by No t e You must assess risks to the health and safety of anyone who may be affected by your work activities, so that you can weigh up whether you have done enough or need to do ● The findings of the risk assessments will be mo r e to comply with the law – reported to see Management of Health and Safety at Work Regulations 19 9 9 . You will find some examples of key areas that you should co n s i d e r , at the end of this ● Action required to remove/control risks will be gu i d a n c e . approved by You will need to involve a number of diffe r ent people, including your safety rep re s e n - tatives and employees, to do the risk assessments. You need to rec o r d the signifi- cant findings of your risk assess- me n t s in a separate document. ● Your policy statement only rec o r ds your arrangements for ensuring the assessments are will be responsible for ensuring the action required done, and are kept up to date. is implemented. Once you have done your risk assessments, you must take the necessary action to rem o v e ● or reduce the risk as far as is reasonably practicable. You can find more guidance will check that the implemented actions have in HSE’s free leaflets Five steps to risk assessment IN D G 1 6 3 removed/reduced the risks. (r ev1) 1998 and A guide to risk assessment req u i re m e n t s : Assessments will be reviewed every Common provisions in health ● and safety law INDG218 1996.
or when the work activity changes, whichever is soonest. 6 A R R A N G E M E N T S
Consultation with employee s
Note ● Employee representative(s) are You must consult your em p l o y e e s . If you recognise a trade union and that trade union has appointed a safety rep re s e n - tative, you must consult them on matters affecting the employees they rep r esent – see Safety Representatives and Safety Committees Regulations 1997. If you do not have trade unions, you must consult employees, either directly or through an elected rep r esentative – see Health and Safety (Consultation with Employees) Regulations 1996. You may wish to use your works committee or another meeting as a forum for consultation. If you have a health and safety committee, you could list what it does, who is on it and how often it meets. ● Consultation with employees is provided by A R R A N G E M E N T S 7
Safe plant and equipment
● No t e You will need to ensure that all plant and equipment (eg lift trucks, vehicles, gas will be responsible for identifying all equipment/plant appliances, machinery guardi n g , needing maintenance. ladders, electrical equipment, lifting equipment, air rec e i v e r s , ventilation plant) that req u i re s ● maintenance (eg pre- s h i f t checks, servicing, thorou g h examinations) is identified and that the maintenance is done. will be responsible for ensuring effective maintenance It may be worthwhile using a pro c e d u r es are drawn up. logbook to rec o r d the maintenance checks. ● When buying new or second- hand plant and equipment, you must check it meets health and safety standards before will be responsible for ensuring that all identified buying it. maintenance is implemented. You can find more guidance in the Pr ovision and Use of Wor k Any problems found with plant/equipment should be Equipment Regulations 1998, ● Lifting Operations and Lifting reported to Equipment Regulations 1998 and HSE’s Buying new ma c h i n e r y INDG271 1998.
●
will check that new plant and equipment meets health and safety standards before it is purchased. 8 A R R A N G E M E N T S
Safe handling and use of substances
Note ● You must assess the risks fr om all substances hazardo u s to health – see Co n t r ol of Substances Hazardous to will be responsible for identifying all substances Health Regulations which need a COSHH assessment. (COSHH) 2002. These are known as your COSHH assessments. ● You should do assessments on substances you use (eg adhesives, paints, cleaning will be responsible for undertaking COSHH assessments. agent, solvents) and substances generated from work activities (eg dust, fume, ● va p o u r ) . Your assessment should identify any health risks. If will be responsible for ensuring that all actions th e r e is a risk you should take identified in the assessments are implemented. steps to remove or control the risk. You can find more guidance in ● HS E ’ s: COSHH: A brief guide to the Regulations IN D G 1 3 6 ( re v 2 ) 2003 (free ) ; COSHH essentials: Easy steps to control chemicals will be responsible for ensuring that all relevant HSG193 1999 employees are informed about the COSHH assessments. ISBN 0 7176 2421 8 and the COSHH ACOP and guidance L5 2002 ISBN 0 7176 2534 6. ●
will check that new substances can be used safely before they are purchased.
● Assessments will be reviewed every
or when the work activity changes, whichever is soonest. A R R A N G E M E N T S 9
Inf o r mation, instruction and supervi s i o n
● The Health and Safety Law poster is displayed at/ No t e leaflets are issued by The Health and Safety In f o r mation for Employees Regulations 1989 req u i r e employers to display a poster (or to provide leaflets) telling employees what they need to know about health and safety. Health and safety advice is available from ● You are req u i r ed to have access to competent advice, either in-house or, if not available, external (eg employers’ organisations, trade associations, trades ● Supervision of young workers/trainees will be unions, TECs, consultants). arranged/undertaken/monitored by If you have young workers and/or take on trainees or students on work experience, you will need to ensure that they are properly instruc t e d and supervised. You must also do specific risk assessments for young people ● – you need to take account of their inexperience, lack of awareness of risks and is responsible for ensuring that our employees working immaturity (see the Ma n a g e - ment of Health and Safety at at locations under the control of other employers, are Work Regulations 1999). given relevant health and safety informa t i o n . If your employees go to work for another employer on your behalf (eg if you are a contractor) you will need to check that they are given relevant health and safety in f o r mation for that location, by that employer/company. 10 A R R A N G E M E N T S
Competency for tasks and training
Note ● Induction training will be provided for all employees by All employees must be given health and safety induction training when they start work. This can be combined with other useful information (eg pay, leave, and hours of work). It needs to cover basic ● Job specific training will be provided by health and safety such as firs t aid and fire safety. Employees will need job- sp e c i fi c training, which includes the health and safety aspects of the job. ● Specific jobs requiring special training are… You also have to provide health and safety training for people when risks change, or pe r i o d i c a l l y , eg if skills do not get used reg u l a r l y . Some jobs will req u i r e additional special training (eg manual handling, driving, slinging techniques, confine d space entry and asbestos rem o v a l ) . You may wish to refer to your company training prog r a m m e . It is important to keep rec o rd s of training (even training you have provided in-house) to show that employees have received training. You should monitor the training rec o r ds, so that ref r esher training is given when necessary. ● Training records are kept at/by
● Training will be identified, arranged and monitored by A R R A N G E M E N T S 11
Accidents, first aid and wo rk - r elated ill health
● Health surveillance is required for employees doing No t e the following jobs Employees must receive health surveillance for certa i n work (eg work with flou r , lead, chrome, asbestos, noise, isocyanates and some chemicals. This will identify any health pr oblems early on so that action can be taken before an em p l o y e e ’ s condition worsens. Your COSHH assessments ● Health surveillance will be arranged by (see page 8) should identify all ar eas and the type of health su r veillance needed. Your rec o r ds should contain details of the employees, the health surveillance proc e d u re s , Health surveillance records will be kept by/at dates and conclusions. The ● health care professional doing the surveillance will hold the actual medical rec o r ds, as these are confide n t i a l . You can find more informa t i o n in HSE’s Health Surveillance at ● The first aid box(es) is/are kept at wo r k HSG61 1999; Un d e r - standing health surveillance at work: An introduction for em p l o y e r s INDG304 1999 (f re e ) and in a number of free leaflet s on specific substances. ● The appointed person(s)/first aider(s) is/are Pr oviding immediate first aid can prevent minor injuries becoming major ones. As a minimum you must have a first aid box and an appointed person to take charge of firs t ● All accidents and cases of work-related ill health are aid req u i r ements. You can find to be recorded in the accident book. The book is mo r e information in HSE’s free le a fl ets First aid at work – your kept by/at questions answered IN D G 2 1 4 19 9 7 and Basic advice on firs t aid at work INDG347 2002. Re c o r ding accidents (even minor ones) means you can see whether you have a pr oblem in a particular area . ● You must rep o r t certain types of accidents and ill health at work, using Form 2508 or Fo r m 2508A – see the is responsible for reporting accidents, diseases and Re p o r ting of Injuries, Diseases dangerous occurrences to the enforcing authority. and Dangerous Occurren c e s Regulations (RIDDOR) 1995. 12 A R R A N G E M E N T S
Mon i t o r i n g
Note ● To check our working conditions, and ensure our You must be able to show that safe working practices are being followed, we will you are checking working conditions and systems of work, ie that you are monitoring health and safety. You can do this both actively and rea c t i v e l y , ie before and after something goes wron g . A C T I V E LY: you or any other appointed person can carry out inspec- tions, have rep o r ts submitted to you by managers, do spot check visits, safety rep re s e n - tative inspections, etc. Trade union safety reps have the right to carry out inspections and investigate ac c i d e n t s . R E A C T I V E LY: you can investigate any accidents or sickness absences that occur. Investigating accidents is a useful way of reviewing your safety systems – ask yourself ● why the accident rea l l y happened and what you can do to stop it happening again. is responsible for investigating accidents. Si m i l a r l y , if you have a number of employees absent because of similar ailments, this might ● mean there is a problem with their jobs causing ill health. When you find out what went is responsible for investigating work-related causes wr ong – put it right. of sickness absences. ●
is responsible for acting on investigation findings to prevent a recurrence. A R R A N G E M E N T S 13
Emergency proc e d u r es – fire and evac u a t i o n
● No t e You must carry out fire risk assessments, in the same way as you do for health and safety is responsible for ensuring the fire risk assessment risk assessments. is undertaken and implemented. Your local fire service can tell you your obligations. ● Escape routes are checked by/every For escape routes, extinguishers and alarms, you should state who checks, how often and also where they are based. You need a routine in case of fire or any other emerge n c y ● Fire extinguishers are maintained and checked evacuation. You should test by/every your alarms and emerge n c y evacuation proc e d u r es reg u l a r l y . You can find more informa t i o n on fire safety in HSE’s Fi r e safety – an employer’s guide 1999 ISBN 0 11 341229 0. ● Alarms are tested by/every
● Emergency evacuation will be tested every 14
Some key areas of risk
● Asbestos ● Stress ● Chemicals ● Substances hazardous to health (including ● Confined spaces dust, fume, etc) ● Display screen ● Temperatures equipment (VDUs) ● Transport (including ● Electricity carrying dangerous ● Excavation substances, and pedestrians in the ● Falling objects/ workplace) collapsing structures ● Vibration ● Fire and explosion ● Violence to staff ● Machinery (including guarding) ● Work equipment ● Manual handling ● Work-related upper limb disorders ● Noise ● Working alone ● Pressure systems ● Working at heights ● Radiation ● Working environment ● Slips, trips and falls
These are just some examples of key areas; this is not an exhaustive list. Look around your workplace to identify other risk areas. If any risks apply to your work activities, you will need to do risk assessments to check that you have removed or reduced the risk.
You can find more information on risk assessments and the key areas of risk in HSE’s:
● Essentials of health and safety at work; ● Health and safety in small firms: An introduction to health and safety; ● Good Health is Good Business: Employers’ guide; and ● Five steps to risk assessment.
See ‘Where can I get more information?’ for details of these publications. 15
Wh e r e can I get more informa t i o n ?
If you still need advice on specific points, check first in the guidance ref e r red to in the notes or listed below.
HSE priced publications Essentials of health and safety at work HSE Books 1994 ISBN 0 7176 0716 X Health risk management – A practical guide for managers in small and medium-sized enterprises HSG137 HSE Books 1995 ISBN 0 7176 0905 7 Management of health and safety at work: Management of Health and Safety at Work Regulations 1999 Approved Code of Practice and guidance L21 (Second edition) HSE Books 2000 ISBN 0 7176 2488 9
HSE free leaflets An introduction to health and safety: Health and safety in small firms INDG259(rev1) HSE Books 2003 Managing health and safety: five steps to success INDG275 HSE Books 1998 Consulting employees on health and safety: A guide to the law INDG232 HSE Books 1996 RIDDOR explained. Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 1995 HSE 31(rev1) HSE Books 1999 Also available in priced packs; ISBN 0 7176 2441 2 Health and safety training. What you need to know INDG345 HSE Books 2001 Also available in priced packs; ISBN 0 7176 2137 5 Five steps to risk assessment INDG163(rev1) HSE Books 1998 Also available in priced packs; ISBN 0 7176 1565 0
While every effo r t has been made to ensure the accuracy of the ref e re n c e s listed in this publication, their future availability cannot be guaranteed. HSE priced and free publications ar e available by mail order from HSE Books PO Box 1999 Su d b u r y Su f folk CO10 2WA. Tel: 01787 881165 Fax: 01787 313995 Website: www.h s e b o o k s . c o . u k
(HSE priced publications are also available from bookshops and free leaflets can be downloaded from HSE’s website: www.hse.gov.uk.)
For information about health and safety ring HSE’s Infoline Tel: 08701 545500 Fax: 02920 859260 e-mail: [email protected] or write to HSE Information Services, Caerphilly Business Park, Caerphilly CF83 3GG.
This guidance is issued by the Health and Safety Executive. Following the guidance is not compulsory and you are free to take other action. But if you do follow the guidance you will normally be doing enough to comply with the law. Health and safety inspectors seek to se c u r e compliance with the law and may ref e r to this guidance as illustrating good practice.
This leaflet is available in priced packs of 5 fr om HSE Books, ISBN 0 7176 1799 8. Single fr ee copies are also available from HSE Books.
© Crown copyright This publication may be freely reproduced, except for advertising, endorsement or commercial purposes. First published 5/00. Please acknowledge the source as HSE.
INDG324 9/03 C1000 Printed and published by the Health and Safety Executive Tir Coed Health & Safety Policy
Health and Safety Policy
Introduction
1. Tir Coed’s role is to promote the health, social, economic and environmental benefits of woodland to rural communities across Wales. This involves working in private and publicly owned woodland as well as in various other locations related to projects.
General Policy
2. Tir Coed’s policy is to operate its business, in accordance with the Health and Safety at Work Act 1974, to ensure, so far as is reasonably practicable, the health and safety of its employees, and to provide appropriately for the health and safety of others who may be affected by its undertakings – i.e. other workers, visitors, neighbours and members of the public.
We aim to:
• Provide adequate control of the health and safety risks arising from our work activities; • Develop and adopt working methods and operational techniques which are safe and without risk to health; • Consult with our employees on matters affecting their health and safety; • Provide and maintain safe equipment; • Make premises and work activities safe for other workers and visitors who may be affected by the activities of Tir Coed; • Ensure that facilities provided for the use of members of the public and activities led by Tir Coed are safe and without risk to health; Tir Coed Health & Safety Policy
• Provide training and information to employees to ensure that working methods, machinery and equipment are fully understood and that all employees are capable of carrying out safely the tasks allocated to them; • Ensure that all employees are competent to do their tasks; • Prevent accidents and cases of work-related ill-health; • Maintain safe and healthy working conditions; • Use only machines and equipment which satisfy appropriate standards of safety, ergonomics and reliability; • Keep under constant review the possibility of purchasing or developing machines, equipment and substances with improved safety standards; • Provide and require the use of suitable tested safety devices and protective equipment and clothing; • Review and revise this policy as necessary at regular intervals.
Organisation and Responsibilities for Carrying out the Policy
3. The primary responsibility for health and safety rests with the Board of Directors of Tir Coed.
4. The Directors are responsible for all aspects of health and safety related to the activities of Tir Coed. They will ensure that there is an effective policy for the organisation and will monitor and review the effectiveness of this policy periodically.
5. All employees have to: • Co-operate with the Directors on health and safety matters; • Take reasonable care of their own health and safety and that of fellow workers; • Report all health and safety concerns to the Directors; • Complete risk assessments for project work; • Operate in accordance with lone worker guidelines (see below).
Tir Coed Health & Safety Policy
Accidents, First aid & work related ill health
• The first aid box is kept in the kitchen at Denmark Farm and at Lisburne House.
• A field first aid kit should be kept in Project Officers’ cars at all time.
• All accidents, near misses and cases of work related ill health are to be recorded in the Accident Book.
• The Accident Book is kept in the office at Denmark Farm and at Lisburne House.
• The Tir Coed Project Officers are responsible for reporting accidents, diseases, near misses and dangerous occurrences to the Directors.
• The Directors are responsible for reporting work-related accidents, diseases and dangerous occurrences, in accordance with RIDDOR 1995.
• The Tir Coed Directors are responsible for investigating accidents, near misses and work-related causes of sickness absences, as well as acting on investigation findings to prevent a recurrence or any future accidents.
Emergency Procedures
• Electrical equipment and Fire Extinguishers will be checked regularly at all offices.
• The fire escapes at Denmark Farm and at Lisburne House are identified.
• Escape routes will be kept clear and unobstructed
Key Areas of Risk
Examples of some of the key areas of risk within the work of Tir Coed are:
• Display screen equipment • Forest machinery (VDUs) • Noise • Electricity • Slips, trips and falls Tir Coed Health & Safety Policy
• Stress • Working alone
• Transport • Working environment
Lone Worker Guidelines
1. All staff will be issued with mobile phones.
2. Staff should inform each other of any visits they have planned, including details of location, expected departure and return times. Staff to contact each other when they arrive back at their office.
3. If staff are not expected to return from a visit within office hours, they should inform their family of location of visit and expected return time.
4. All staff and their families should have contact details of other staff members and their families, for out-of-office contact, in case of emergency.
Implementation
Promotion of the policy: All Tir Coed Directors and employees will receive a copy of this policy and be aware of its contents and requirements.
Monitoring and Evaluation: This policy will be reviewed by the Board of Directors every six months. If aspects of the policy are no longer valid, or if there has been a significant change in the matters to which it relates, or in legislation, the Directors will agree changes to the policy, as required.
LAST REVIEWED
DATE:
SIGNED:
POSITION:
on behalf of Tir Coed Board of Directors APPENDIX 10.29 Human Resources & Organisational Structure
SIF is a small organisation with 25 employees based in three locations. It has the mandate from the Seychelles Government to manage two natural World Heritage Sites, namely Aldabra Atoll and Vallee de Mai. The Headquarters of SIF are based in Mahe, Victoria (see diagram below).
Location: Mahe, Victoria Distance from HQ: NA Comments: manages two sites & main Coco-de-Mer outlet Number of Employees on site: 5
SIF Headquarters
Aldabra Atoll Site Vallee de Mai Site
Location: Aldabra Atoll Location: Praslin Island Distance from HQ: 1000 km away Distance from HQ: 30 km away Comments: no airstrip – remote access Comments: easily accessible Number of Employees on site: 12 (currently) Number of Employees on site: 11 (currently)
The Headquarters (HQ) houses 5 employees, including the Executive Director and the Executive Officer. The main activities performed in the HQ are: Management of the two natural World Heritage sites, Finance & Accounting, Sales of merchandise (including Coco de Mer), Human Resources, Fund Raising Activities and Communication.
The Aldabra Atoll site (a natural World Heritage site) is strict nature reserve that has 12 employees. The main job roles there are: Site Warden, Research Officer, Logistics Manger, Rangers, Mechanics, Boatmen etc. Their main activities are to: monitor research activities, prevent poaching, maintain the facilities and guide visitors.
The Vallee de Mai site (also a natural World Heritage site) is a commercially viable site that has 9 employees. The main jobs there are: Site Warden, Rangers, Field Workers, Cleaners etc*. Their main activities are to: validate entry tickets, maintain paths & trails, prevent poaching, fire prevention, safety of visitors and collection of Coco de Mer nuts.
For a detail organisational chart, please review the relative Appendix.
* Please note that sales of merchandise and tickets is presently outsourced to an external contractor. APPENDIX 10.30
Gap Analysis
Employee’s Name:
Instructions
Complete this review form as comprehensively as possible after each review. Use one form per individual and enter the date of each review.
Review all of the competency areas with the individual at the end of the assignment. Feedback your comments about his/her performance in terms of both strengths/weaknesses and identify and agree specific gaps and areas requiring improvement
Metrics
Scores are given using a 1 to 5 scale (with 5 indicating the highest level of performance) Weight Factors are also given on a 1 to 5 scale (with 5 indicating the highest importance)
Assessment Factors
The Gap Analysis between role requirements and actual employee performance will be based on the following 14 factors: o Communication Skills o Relationship Building o House Keeping o Analysis & Problem Solving o Ability to Prioritise o Record Keeping o Understand Instruction o Technical Expert o Generators o Outboards o Pumps o Electrical o Plumbing o Fabrication skills o Motivated o HSE o Working in/Building Teams o Conflict Resolution
Explanation of factors is provided in the Appendix
Step 1: Set the Skills Requirements of Role (including relative importance)
SKILLS
Target Weight - Score - Importance Expectation 1. COMMUNICATION SKILLS 2 1 2 3 4 5
2. RELATIONSHIP BUILDING 3 1 2 3 4 5
3. HOUSEKEEPING 2 1 2 3 4 5
4. ANALYSIS & PROBLEM SOLVING 3 1 2 3 4 5
5. ABILITY TO PRIORITISE 2 1 2 3 4 5
6. RECORD KEEPING 3 1 2 3 4 5
7. UNDERSTAND INSTRUCTIONS 2 1 2 3 4 5
KNOWLEDGE
Target Weight - Score - Importance Expectation 8. TECHNICAL EXPERTISE 3 1 2 3 4 5
8.1 GENERATORS 3 1 2 3 4 5
8.2 OUTBOARDS 3 1 2 3 4 5
8.3 PUMPS 2 1 2 3 4 5
8.4 ELECTRICAL 2
8.5 PLUMBING 2 1 2 3 4 5
8.5 FABRICATION 2 1 2 3 4 5
BEHAVIOUR
Target Weight - Score - Importance Expectation 9. MOTIVATED 3 1 2 3 4 5
10. HSE 3
11. WORKING IN/BUILDING TEAMS 2 1 2 3 4 5
12. CONFLICT RESOLUTION 2 1 2 3 4 5
Step 2: Use target scores above to identify the skills & competencies requirements of the role. Plot the results in the Gap Analysis Template at the end (Step 5)
Step 3: Define employee performance during the assessment period
SKILLS
Target Weight - Score - Importance Expectation 1. COMMUNICATION SKILLS 1
2. RELATIONSHIP BUILDING 3
3. HOUSEKEEPING 2
4. ANALYSIS & PROBLEM SOLVING 3
5. ABILITY TO PRIORITISE 2
6. RECORD KEEPING 2
7. UNDERSTAND INSTRUCTIONS 2
KNOWLEDGE
Target Weight - Score – Importance Expectation 8. TECHNICAL EXPERTISE 3
8.1 GENERATORS 3
8.2 OUTBOARDS 2
8.3 PUMPS 3
8.4 ELECTRICAL 2
8.5 PLUMBING 3
8.5 FABRICATION 2
BEHAVIOUR
Target Weight - Score - Importance Expectation 9. MOTIVATED 3
10. HSE 2
11. WORKING IN/BUILDING TEAMS 3
12. CONFLICT RESOLUTION 3
Step 4: Use scores above to identify employee performance. Plot the results in the Gap Analysis Template using a different colour than in Step 2
APPENDIX 10.31 Role Description Example
“Ranger Guide”
General Description Role Title Ranger Guide Purpose of the role Key Accountabilities: Communicate well with visitors. Knowledge of gorillas, forest etc. Lead visitor groups to Knowledge of new products e.g. birding, nature trails view gorillas and Interpersonal skills to deal with visitors e.g. hospitable, other activities problem-solving Physical fitness Knowledge of gorillas, forest etc. Interpretation and Knowledge of culture, history, environment information sharing Speak different languages Provides first aid to visitors, staff in the forest or at Provide first aid reception centre Trained in animal behaviours, patrolling and defensive skills. Gather intelligence on threats to safety e.g. armed Ensuring visitors’ thugs safety and security Knowledge of forest area Defend visitor against physical threat e.g. animal, armed person Knowledge of gorilla health and diseases Gorilla health Collect samples monitoring Observe health of other animals Provide information to visitors on other products, Sales and marketing parks and on merchandise available of park Gathering information from visitors on quality of service and on interest in other products
APPENDIX 10.32
Gap Analysis
Employee’s Name: BMCA Ranger Guide
Instructions
Complete this review form as comprehensively as possible after each review. Use one form per individual and enter the date of each review.
Review all of the competency areas with the individual at the end of the assignment. Feedback your comments about his/her performance in terms of both strengths/weaknesses and identify and agree specific gaps and areas requiring improvement
Metrics
Scores are given using a 1 to 5 scale (with 5 indicating the highest level of performance) Weight Factors are also given on a 1 to 5 scale (with 5 indicating the highest importance)
Assessment Factors
The Gap Analysis between role requirements and actual employee performance will be based on the following 14 factors identified from the Role Profile: o Communication skills o Language skills o Sales & Marketing skills o Public relations skills o Problem solving skills o Physical fitness o Defence skills o First Aid skills o Tracking skills o Map interpretation & GPS skills o Health monitoring skills o Product knowledge e.g. gorillas, birds o Knowledge of culture, history, environment o Knowledge of animal behaviours and health
Explanation of factors is provided in the Appendix
Step 1: Set the Skills Requirements of Role (including relative importance)
SKILLS
Weight - Target Score - Importance Expectation 1. COMMUNICATION SKILLS 5 1 2 3 4 5
2. LANGUAGE SKILLS 3 1 2 3 4 5
3. SALES & MARKETING SKILLS 4 1 2 3 4 5
4. PUBLIC RELATIONS SKILLS 3 1 2 3 4 5
5. PROBLEM SOLVING SKILLS 3 1 2 3 4 5
6. DEFENCE SKILLS 2 1 2 3 4 5
7. FIRST AID SKILLS 4 1 2 3 4 5
8. TRACKING SKILLS 1 1 2 3 4 5
9. MAP & GPS SKILLS 4 1 2 3 4 5
10. HEALTH MONITORING SKILLS 2 1 2 3 4 5
KNOWLEDGE
Weight - Target Score - Importance Expectation 11. PRODUCT KNOWLEDGE 5 1 2 3 4 5
12. KNOWLEDGE OF CULTURE & HISTORY 4 1 2 3 4 5
13. KNOWLEDGE OF ANIMAL BEHAVIOURS & HEALTH 3 1 2 3 4 5
BEHAVIOUR
Weight - Target Score - Importance Expectation 14. PHYSICAL FITNESS 4 1 2 3 4 5
Step 2: Use target scores above to identify the skills & competencies requirements of the role. Plot the results in the Gap Analysis Template at the end (Step 5) Step 3: Define employee performance during the assessment period
2
SKILLS
Actual Score Weight - – Current Importance Status 1. COMMUNICATION SKILLS 5 1 2 3 4 5
2. LANGUAGE SKILLS 3 1 2 3 4 5
3. SALES & MARKETING SKILLS 4 1 2 3 4 5
4. PUBLIC RELATIONS SKILLS 3 1 2 3 4 5
5. PROBLEM SOLVING SKILLS 3 1 2 3 4 5
6. DEFENCE SKILLS 2 1 2 3 4 5
7. FIRST AID SKILLS 4 1 2 3 4 5
8. TRACKING SKILLS 1 1 2 3 4 5
9. MAP & GPS SKILLS 4 1 2 3 4 5
10. HEALTH MONITORING SKILLS 2 1 2 3 4 5
KNOWLEDGE
Actual Score Weight - – Current Importance Status 11. PRODUCT KNOWLEDGE 5 1 2 3 4 5
12. KNOWLEDGE OF CULTURE & HISTORY 4 1 2 3 4 5
13. KNOWLEDGE OF ANIMAL BEHAVIOURS & HEALTH 3 1 2 3 4 5
BEHAVIOUR
Actual Score Weight - – Current Importance Status 14. PHYSICAL FITNESS 4 1 2 3 4 5
3 Step 4: Use scores above to identify employee performance. Plot the results in the Gap Analysis Template using a different colour than in Step 2
4 APPENDIX 10.33
TRNP Risk Responses
7.1: Overview
A total of 26 specific risks were identified by the workshop participants. These were individually assessed using 3 factors: impact, likelihood and the level of control available. These specific risks were then categorized into 7 groups, namely (a) enforcement issues, (b) accidents and emergencies, (c) environmental disasters, (d) management issues, (e) other external threats, (f) security issues, and (g) tourism- related risks.
Individual ratings within the group were then averaged to reflect the overall assessment of each group. The results are presented in the chart below.
Figure 1. Bubble chart of risks identified by TMO and partners in relation to level of impact, likelihood and control.
Plotting the identified risks on a bubble chart gave a clustering of bubbles at its center. More than half of these are to the upper right of the chart, suggesting that these risks, i.e., security, other external threats, enforcement issues, and environmental disasters, need to be prioritized. Of these four, enforcement issues are of the highest likelihood in combination with impact and level of control. Risks coming from external threats also has similar impact and likelihood ratings but was acknowledged by TMO to be beyond their control (as indicated by the small size of its bubble). Thus response to this along with risks coming from environmental disasters (also having a low level of control) will need to be addressed primarily through a contingency plan.
7.2: Enforcement Issues
Heading Content Description
RISK poaching by foreigners, illegal fishing by locals, harassment suits filed DESCRIPTION against enforcers
LINK TO Threatens biodiversity conservation BUSINESS Increases costs required to manage MPA OBJECTIVES Decreases morale of ranger enforcers
RISK OWNER Angelique Songco + Marine Park Rangers (MPR’s) (FOCAL POINT)
CURRENT RISK • Partnership with Philippines navy and coastguard RESPONSES • Conduct regular patrols (recent increases in numbers of patrols) • Increased ranger enforcement incentives • Aggressive legal pursuit of cases • Secure support from partners (logistical) • Establish additional ranger station on South Island (ongoing)
Likelihood and impact of illegal fishing is assessed highest at 8 and 7 (on IMPACT / a scale of 1-10) respectively. LIKELIHOOD Poaching has a likelihood of 4 and an impact of 6. RATIONALE Harassment suits have a likelihood of 6 and an impact of 5.
Enforcement is seen as the risk with the highest combined likelihood and impact for TRNP as poaching and illegal fishing already happen on a regular basis and can seriously affect the biodiversity of the MPA. In general, TMO has the most control over illegal fishing and poaching through their enforcement partnership with the navy and the coastguard, the ranger patrols and their pursuit of culprits through legal action. TMO has less control over harassment suits being served by poachers/illegal fishers as this is seen locally as a natural response to being caught. So far TMO have successfully defended themselves against these suits however this diverts time and resources from other activities and can demoralise enforcement staff.
ADDITIONAL • Train more rangers in paralegal procedures ACTIONS • Increase number of rangers + facilities • Further increase number of patrols, including night patrols (FUTURE • Upgrade and increase enforcement equipment (larger twin engine PLAN) boat) • Pursue enactment of Tubbataha Bill to allow direct levying of fines (mitigate enforcement costs)
REMARKS Park expanded from 33,200 to 96,828 hectares in 2006. Increase in (OPTIONAL) enforcement lagging expansion of area.
7.3: Other External Threats
Heading Content Description
RISK DESCRIPTION increasing solid waste, developments in related industries (i.e., transportation strikes, economic fluctuations), energy explorations
Negative impact on tourism market LINK TO BUSINESS Threatens biodiversity OBJECTIVES Increases cost of operations
TPAMB, TMO Park Manager + rangers RISK OWNER (FOCAL POINT)
• Regular coastal cleanup at the islets and at the ranger station CURRENT RISK sandbar RESPONSES • Rigid solid waste management protocols/ practices effected at the Park • Resource mobilization options are constantly explored in the hopes of increasing revenues for park operations
Increase in solid waste had an impact level of 5 and a likelihood of 7 with IMPACT / level of control at 0.3. Developments in related industries were given an LIKELIHOOD impact level of 7, likelihood of 4 and a control level of 0.1. Energy RATIONALE explorations rated high impact and likelihood levels both at 7 with a very low control level of 0.1. Control over the solid waste problem is three-pronged. Those generated by the rangers are highly controlled because its management is implemented and monitored by the TMO. Waste generated by the tourists is managed by the boat managers who are answerable to the TMO, thus providing the office with a limited degree of control. The biggest problem comes from boats passing close to but not entering the Park which often dump their garbage at sea. These waste materials get washed ashore in the Park. TMO is financially vulnerable to developments in related industries because a big portion of its operations is funded by conservation fees which come from tourists and boat operators bringing these visitors to the TRNP. However, its authority only covers the park and is unlikely to cause any major change on the tourism market even if it tried.
ADDITIONAL • Actively promote Tubbataha Reefs as a tourism site for non-divers ACTIONS • Reduce solid waste generation in the Park
(FUTURE PLAN)
REMARKS
(OPTIONAL)
7.4: Environmental Disasters
Heading Content Description
RISK DESCRIPTION Global Climate Change, major storms and other natural disasters, e.g., tsunamis.
Threatens biodiversity LINK TO BUSINESS Negative impact on tourism market OBJECTIVES Increase cost of management
RISK OWNER TPAMB, Park Manager + marine park rangers (FOCAL POINT)
CURRENT RISK • Regular research monitoring to assess status of biodiversity in the RESPONSES park • Use of renewable resources at the ranger station • Regular communications with headquarters to update mainland offices (TMO and NAVFORWEST) of current situation at ranger station • Regular monitoring of weather conditions through radio and television
Global climate change rated high on impact (8) and likelihood (6). IMPACT / Natural disasters likewise rated high on impact (8) but with a very low LIKELIHOOD likelihood (2). Major storms garnered a 7 rating on impact and 6 on RATIONALE likelihood. All three identified risk sources rated a low level of control at 0.1. TMO can do little more than cope in the face of these events as these are recognized force majeure. Its potential impact on the resources of the TRNP nevertheless necessitates some degree of action to mitigate its effect.
ADDITIONAL • Continue monitoring of biodiversity status ACTIONS • Reinforce park station to weather storms • Provide 10-man life rafts and life vests for the station equipped (FUTURE PLAN) with SOLAS, first aid kit and emergency provisions
REMARKS The remoteness of the TRNP causes difficulty in providing assistance to (OPTIONAL) the rangers on duty should these environmental disasters strike. Expansion of the park boundaries compounds this difficulty because the rangers have to break up into smaller groups to patrol the area.
7.5: Security Issues
Heading Content Description
RISK DESCRIPTION terrorism, threats from intruders
Reduces marketability of Tubbataha Reefs LINK TO BUSINESS Increases operational costs OBJECTIVES
TPAMB, WESCOM, Philippine Navy, Coast Guard, TMO, marine park RISK OWNER rangers (FOCAL POINT)
• Regular patrol of the Park CURRENT RISK • Radar and other monitoring equipment and facilities provided to RESPONSES facilitate patrolling and monitoring of the Park • Increased number of patrol boats and frequency of patrols • Regular communications between park station and Philippine Navy headquarters in mainland Palawan • Graveyard watch conducted
Security issues have a high level of impact (7), low level of likelihood (4) IMPACT / and a medium level of control (0.5) LIKELIHOOD RATIONALE Threats from intruders and terrorists are agreed to be the responsibility of the Philippine Navy and the Philippine Coast Guard. The remoteness of the park station as well as the limited number of personnel assigned to it at a given time lowers the level of control which could be higher if a larger contingency were assigned to the area.
ADDITIONAL • Draft a contingency plan for security issues ACTIONS • Add more navy personnel (at least 2) with high-caliber firearms • Provide more sophisticated radar and/or other surveillance (FUTURE PLAN) equipment
REMARKS
(OPTIONAL)
7.6: Management Issues Heading Content Description
RISK DESCRIPTION leakage/fraud (i.e., information, resources), increase in operation costs, change in leadership (e.g., political, partner agencies), loss of support from partners/donors, loss of key staff, negative perception by tourists and other sectors, unclear legal status, competition with other activities and sites, internal conflict (within TMO, between rangers at the park station)
Increase management cost LINK TO BUSINESS Decrease in tourism revenues and support from partners OBJECTIVES Loss of morale of park staff Inefficient management
TPAMB+ park manager RISK OWNER (FOCAL POINT)
• External financial audit conducted CURRENT RISK • Briefing and debriefing of rangers stationed at the park RESPONSES • Park rangers required to undergo special training prior to duty at the station • Active and continuous pursuit of donors to fund specific activities of the TMO • Incentives given to key staff, e.g., trainings, bonuses for rangers • Team building exercises conducted for staff and rangers • Maintaining lines of communication with tourism sector • Filing of TRNP Bill
Level of impact ranged from 4-7 with median of 5. Likelihood of IMPACT / occurrence had a wider range of 1-7 with a central tendency at 3. Level LIKELIHOOD of control was likewise varied, ranging from 0.1(change in leadership) to RATIONALE 0.8 (leakage and frauds) with most risks within the group having a rating of 0.5. These risks main similarity was that their impact and possible solution revolved around current management policies and structure both within TMO and without. Given its existing unique relation to various private organizations and national agencies, TMO is left vulnerable to major structural changes in these offices such as change in leadership. In an effort to concretize its identity as an office, the TRNP bill was drafted but, after 3 congressional changes, it has yet to be passed. ADDITIONAL • Conduct annual psychological and physical screening of rangers ACTIONS to be sent for duty at the park station Establish regular external management and financial audit (FUTURE PLAN) • • Work towards securing tenure and concomitant benefits for key staff • Assist in the promotion and marketing of TRNP • Provide security of tenure for park staff
REMARKS With the expansion of the boundaries of the park to more than three times its original size, the funds of maintaining and patrolling the area should (OPTIONAL) have increased commensurately. However, the budget is primarily dependent on conservation fees collection which is not enough to support TMO operations as it were before the expansion, leaving the office vulnerable to financial risks and fluctuations in the tourism industry and the even smaller and more specialized diving tourism market.
7.7: Tourism-related Issues
Heading Content Description
RISK DESCRIPTION tourists’ and tour operators’ non-compliance to park rules and regulations, drop in tourism
Negative impact on market LINK TO BUSINESS Threatens biodiversity OBJECTIVES Increases cost of operations
TPAMB, Park Manager, rangers RISK OWNER (FOCAL POINT)
• Briefing of tourists prior to entry to the Park CURRENT RISK • Boarding of dive boats upon entry into the Park RESPONSES • Conduct of Annual Dive Operators’ Consultation • Provision of information materials to boat managers and tourists which include the park rules and regulations • Investigation of complaints and imposition of sanctions • Maintain lines of communication with tourism sector
Tourist non-compliance rated low on impact (4) and somewhat high (6) IMPACT / on likelihood. Tour operators’ non-compliance rated 5 on impact and 6 on LIKELIHOOD likelihood. Both rated 0.6 on level of control. Tourism drop rated high on RATIONALE impact (7) but low on likelihood (3) and level of control (0.3). It is generally acknowledged that non-compliance by tour operators would have a slightly higher impact since they repeatedly come to Tubbataha Reef and deal with tourists. They can influence tourist compliance to rules and regulations. Thus their non-compliance would have a higher impact because of its multiplying effect. In the case of tourism drop, it is generally accepted that TMO has no control over this risk.
ADDITIONAL • Improve tourism facilities, i.e. mooring buoy, ranger station ACTIONS • Produce audio visual presentation for tourists Explore the possibility of divemaster accreditation for TRNP (FUTURE PLAN) • • Include FAQs section in website REMARKS
(OPTIONAL)
7.8: Accidents and emergencies
Heading Content Description
RISK Fire, oil spills, diving incidents, medical emergencies, equipment DESCRIPTION malfunctions resulting in emergency situations, groundings
Threatens wildlife and human life LINK TO Damage to properties increases cost of park management BUSINESS Negative impact on market OBJECTIVES
TPAMB, dive operators, TMO, PCG, PN, marine park rangers RISK OWNER (FOCAL POINT) CURRENT RISK • Existing contingency plan for oil spills and groundings developed RESPONSES with the assistance of national agencies, e.g., Philippine Navy, Coast Guard • Protocol requires all boats entering the park to have shortwave radios and fire prevention measures onboard • The Park Station is equipped with a single-side band (SSB) and a satellite phone to facilitate coordination with navy headquarters for emergency evacuation and other urgent needs • Maintenance plan for equipment followed for repair and maintenance needs of ranger station • Rangers trained for proper use and troubleshooting of equipment at ranger station • Rangers trained to respond to medical emergencies both on land and at sea • Series of communications between TMO and NAMRIA to update the latter’s existing map for Tubbataha Reefs • Provision of first aid kit
Impact assessment ranges from 3-8 with oil spills rating the highest and IMPACT / the rest below 5. Low likelihood of occurrence for all identified accidents LIKELIHOOD and emergencies (ratings ranged from 2-4). Level of control varied from RATIONALE 0.3-0.8 with fire incidents having the highest rating. TMO acknowledges the devastating impact of oil spills on the reefs and its denizen but at the same realizes that the likelihood of its occurrence is low and its control over such an occurrence is even lower. TMO has to rely heavily on national agencies such as the Coast Guard District for oil spill response. In the case of fire which had low impact and likelihood (3 and 2, respectively), TMO has more control over the situation (0.8) because of current preventive measures available to rangers and dive tour operators. Accidents related to diving incidents and medical emergencies primarily impact the tour operators with the ranger’s role limited to providing assistance to boat managers, thus accounting for low impact, likelihood and control ratings. Equipment malfunctions likewise rated low because of an existing maintenance plan to should circumvent such possibilities. Grounding incidents are currently being circumvented by the updating of maps by NAMRIA.
Provide fire prevention equipment ADDITIONAL • • Provide twin (75hp) engine patrol boat ACTIONS (FUTURE PLAN)
REMARKS (OPTIONAL)
7.9: Contingency Planning Table
Level of Probability Risk Characteristics Planned Estimate Responsible Risk Estimate Response d Cost Resource
HIGH Not very likely Security Regular exposure of park rangers More Php350, 000 Donors to illegal fishers/poachers. sophisticated 7 4 Threat from Constant threat of weapons being radar, surveillance intruders and used, not seen to date. Also equipment terrorists threat of ambush to ranger station. Night watch rotation Ability to avoid the risk occurring is low or non-existent. Can’t Operational control behaviour of guidelines : fishers/poachers. response plan Impact could be immediate. Injury or death of enforcement staff or poachers. Ability to mitigate the impact of the risk is medium to low. Depend on vigilance of rangers and local intelligence.
Proximity of the park to a major Surveillance Same as TPAMB, Oil HIGH Not very likely Oil spills • sea lane equipment above companies, 8 4 Polluter, Coast • Several incidents in the past of Response plan to Guard, Navy ships running aground inside the oil spills park. • Impact is immediate and could have devastating effects on the park’s biodiversity • Ability to mitigate impact is low. Will have to depend on early detection and close coordination with Coast Guard
Diving as a sport has its share of Same as above Same as Dive Operator, MEDIUM Likely Accidents and • medical accidents. above TMO, Rangers, Medical Navy, medical emergencies • Remoteness of the park facility increases risk when medical assistance is delayed
HIGH Likely Major storms Exposure to major storms is 10-man life rafts Php 240,000 TPAMB, TMO, frequent/regular equipped with life Rangers 7 6 Ability to avoid the risk occurring vests, first aid kit, is non-existent portable Impact could be seen in the communication equipment, and short-term emergency Ability to mitigate the impact of provisions the risk is moderate
APPENDIX 10.34 Contingency Planning Table Template
Level of Probability Risk Characteristics Planned Estimated Responsible Risk Estimate Response Cost Resource
HIGH Likely Risk 1 Exposure to this type of risk is daily What Estimated Allocated or constant resource and costs for resources for Ability to avoid the risk occurring is equipment equipment monitoring low or non-existent will be and resource the event of This risk has occurred a number of required to to this risk times within the organisation reduce the implement occurring effect on the the and also Impact could be immediate organisation contingency executing Ability to mitigate the impact of the plan the risk is low to non-existent contingency plan if appropriate
HIGH Likely Risk 2 Same as above Same as Same as Same as above above above
HIGH Likely Risk 3 Same as above Same as Same as Same as above above above
MEDIUM Feasible Risk 4 Exposure to this type of risk is What Estimated frequent or regular resource and costs for Ability to avoid the risk occurring is equipment equipment moderate will be and resource This risk is known to occur from required to to time to time in similar organisations reduce the implement effect on the the Impact could be seen in the short- organisation contingency term plan Ability to mitigate the impact of the risk is moderate
MEDIUM Feasible Risk 5 Same as above Same as Same as Same as above above above
MEDIUM Feasible Risk 6 Same as above Same as Same as Same as above above above
LOW Unlikely Risk 7 Exposure to this type of risk is What Estimated infrequent resource and costs for Ability to avoid the risk occurring is equipment equipment high will be and resource This risk has occurred very rarely or required to to not at all, as far as is known reduce the implement effect on the the Impact could be seen in the organisation contingency medium- to long-term plan Ability to mitigate the impact of the risk is high
LOW Unlikely Risk 8 Same as above Same as Same as Same as above above above
LOW Unlikely Risk 9 Same as above Same as Same as Same as above above above
APPENDIX 10.34 Contingency Planning Table Template
Level of Probability Risk Characteristics Planned Estimated Responsible Risk Estimate Response Cost Resource
HIGH Likely Risk 1 Exposure to this type of risk is daily What Estimated Allocated or constant resource and costs for resources for Ability to avoid the risk occurring is equipment equipment monitoring low or non-existent will be and resource the event of This risk has occurred a number of required to to this risk times within the organisation reduce the implement occurring effect on the the and also Impact could be immediate organisation contingency executing Ability to mitigate the impact of the plan the risk is low to non-existent contingency plan if appropriate
HIGH Likely Risk 2 Same as above Same as Same as Same as above above above
HIGH Likely Risk 3 Same as above Same as Same as Same as above above above
MEDIUM Feasible Risk 4 Exposure to this type of risk is What Estimated frequent or regular resource and costs for Ability to avoid the risk occurring is equipment equipment moderate will be and resource This risk is known to occur from required to to time to time in similar organisations reduce the implement effect on the the Impact could be seen in the short- organisation contingency term plan Ability to mitigate the impact of the risk is moderate
MEDIUM Feasible Risk 5 Same as above Same as Same as Same as above above above
MEDIUM Feasible Risk 6 Same as above Same as Same as Same as above above above
LOW Unlikely Risk 7 Exposure to this type of risk is What Estimated infrequent resource and costs for Ability to avoid the risk occurring is equipment equipment high will be and resource This risk has occurred very rarely or required to to not at all, as far as is known reduce the implement effect on the the Impact could be seen in the organisation contingency medium- to long-term plan Ability to mitigate the impact of the risk is high
LOW Unlikely Risk 8 Same as above Same as Same as Same as above above above
LOW Unlikely Risk 9 Same as above Same as Same as Same as above above above
APPENDIX 10.35 A. Weights
Please select the relative importance (weights) of the risk dimensions. The sum of the weights must equal to 1
Dimensions of Riak Impact Financial Importance 0,8 Environmental Conservational Importance 0,2 Other Factor 01 0,0 Other Factor 02 0,0 total 1,0 correct
Dimensions of Riak Probability Time of occurance per time period 1,0 Factor 02 0,0 Fcator 03 0,0 Factor 04 0,0 total 1,0 correct
B. Rating MATRIX
LEVEL OF CONTROL (please rank from 0.1-1.0, with 1.0 being the highest code RISK ELEMENTS IMPACT (please rank from 1-5, with 5 being the highest impact) LIKELIHOOD OF OCCURANCE (please rank from 1-5, with 5 being the highest probability) level of control) Impact Probability Control Financial weighting Environmental weighting Other Factor 01 Weighting Other Factor 02 Weighting TOTAL 1 weighting 2 weighting 3 Weighting 4 Weighting TOTAL TOTAL TOTAL TOTAL TOTAL 1 Global Warming 1 0,8 5 0,2 0,0 0,0 1,8 3,0 1,0 0,0 0,0 0,0 3,0 1,0 Global Warming 1,8 3,0 1,0 2 Fire 5 0,8 5 0,2 0,2 0,2 5 2,5 1,0 0,0 0,0 0,0 2,5 3,0 Fire 5,0 2,5 3,0 3 Major Storm 2 0,8 2 0,2 0,2 0,2 2 2,0 1,0 0,0 0,0 0,0 2,0 1,0 Major Storm 2,0 2,0 1,0 4 Other natural disaster 3 0,8 4 0,2 0,2 0,2 3,2 3,0 1,0 0,0 0,0 0,0 3,0 2,0 Other natural disaster 3,2 3,0 2,0 5 Poaching 2 0,8 2 0,2 0,2 0,2 2 4,0 1,0 0,0 0,0 0,0 4,0 7,0 Poaching 2,0 4,0 7,0 6 Oil spill in Aldabra 3,5 0,8 5 0,2 0,2 0,2 3,8 1,0 1,0 0,0 0,0 0,0 1,0 4,0 Oil spill in Aldabra 3,8 1,0 4,0 7 Leaking/Fraud 2 0,8 1 0,2 0,2 0,2 1,8 3,5 1,0 0,0 0,0 0,0 3,5 8,0 Leaking/Fraud 1,8 3,5 8,0 8 Competition from F.F. 5 0,8 1 0,2 0,2 0,2 4,2 4,5 1,0 0,0 0,0 0,0 4,5 8,0 Competition from F.F. 4,2 4,5 8,0 9 Problem with tour operator 4 0,8 1 0,2 0,2 0,2 3,4 3,0 1,0 0,0 0,0 0,0 3,0 8,0 Problem with tour operator 3,4 3,0 8,0 10 Tourism drop in Seychelles 5 0,8 1 0,2 0,2 0,2 4,2 3,0 1,0 0,0 0,0 0,0 3,0 2,0 Tourism drop in Seychelles 4,2 3,0 2,0 11 Increase in operation input 3 0,8 1 0,2 0,2 0,2 2,6 3,0 1,0 0,0 0,0 0,0 3,0 9,0 Increase in operation input 2,6 3,0 9,0 12 Govern change for ex rules 5 0,8 1 0,2 0,2 0,2 4,2 3,0 1,0 0,0 0,0 0,0 3,0 3,0 Govern change for ex rules 4,2 3,0 3,0 13 Lose relationship with IDC 2 0,8 1 0,2 0,2 0,2 1,8 3,0 1,0 0,0 0,0 0,0 3,0 6,0 Lose relationship with IDC 1,8 3,0 6,0 14 Security issues 4 0,8 4 0,2 0,2 0,2 4 3,0 1,0 0,0 0,0 0,0 3,0 7,0 Security issues 4,0 3,0 7,0 15 Accident (human) 3 0,8 1 0,2 0,2 0,2 2,6 3,0 1,0 0,0 0,0 0,0 3,0 9,0 Accident (human) 2,6 3,0 9,0 16 Accident (environ) 2 0,8 3 0,2 0,2 0,2 2,2 2,0 1,0 0,0 0,0 0,0 2,0 3,0 Accident (environ) 2,2 2,0 3,0 17 Lose key staff 2 0,8 1 0,2 0,2 0,2 1,8 3,0 1,0 0,0 0,0 0,0 3,0 5,0 Lose key staff 1,8 3,0 5,0 18 Damage reputation (Science/NGO) 2 0,8 1 0,2 0,2 0,2 1,8 1,5 1,0 0,0 0,0 0,0 1,5 5,0 Damage reputation (Science/NGO) 1,8 1,5 5,0 19 Damage reputation (Tourists) 4 0,8 1 0,2 0,2 0,2 3,4 1,0 1,0 0,0 0,0 0,0 1,0 7,0 Damage reputation (Tourists) 3,4 1,0 7,0 20 Govern split two sites 5 0,8 3,5 0,2 0,2 0,2 4,7 2,5 1,0 0,0 0,0 0,0 2,5 3,0 Govern split two sites 4,7 2,5 3,0 21 Vandalism 2 0,8 2 0,2 0,2 0,2 2 2,0 1,0 0,0 0,0 0,0 2,0 8,0 Vandalism 2,0 2,0 8,0 5 22 Strike 1 0,8 2 0,2 0,2 0,2 1,2 2,0 1,0 0,0 0,0 0,0 2,0 8,0 Strike 1,2 2,0 8,0 23 Local community problems 3 0,8 3 0,2 0,2 0,2 3 2,0 1,0 0,0 0,0 0,0 2,0 6,0 Local community problems 3,0 2,0 6,0 24 Loss of fundraising/WH status 1 0,8 1 0,2 0,2 0,2 1 1,0 1,0 0,0 0,0 0,0 1,0 5,0 Loss of fundraising/WH status 1,0 1,0 5,0 4
code RISK ELEMENTS Impact Probability Control calc Total Risk 8 Competition from F.F. 1,8 3,0 1,0 5,4 18,9 3 10 Tourism drop in Seychelles 5 2,5 3,0 12,5 12,6 12 Govern change for ex rules 2 2,0 1,0 4 12,6 2 Fire 3,2 3,0 2,0 9,6 12,5 14 Security issues 2 4,0 7,0 8 12 1 20 Govern split two sites 3,8 1,0 4,0 3,8 11,75 9 Problem with tour operator 1,8 3,5 8,0 6,3 10,2 4 Other natural disaster 4,2 4,5 8,0 18,9 9,6 5 Poaching 3,4 3,0 8,0 10,2 8 0 . 11 Increase in operation input 4,2 3,0 2,0 12,6 7,8 f .F
15 Accident (human) 2,6 3,0 9,0 7,8 7,8 Fire Strike arming
7 Leaking/Fraud 4,2 3,0 3,0 12,6 6,3 ourists) Aldabra andalism 6 Poaching 23 Local community problems 1,8 3,0 6,0 5,4 V
1 Global Warming 4 3,0 7,0 12 5,4 Major Storm Lose key staf Leaking/Fraud Security issues
13 Lose relationship with IDC 2,6 3,0 9,0 7,8 5,4 Global W Accident (human) Oil spill in 17 Lose key staff 2,2 2,0 3,0 4,4 5,4 Accident (environ) Competition from F Govern split two sites 16 Accident (environ) 1,8 3,0 5,0 5,4 4,4 Other natural disaster 3 Major Storm 1,8 1,5 5,0 2,7 4 ourism drop in Seychelles Lose relationship with IDC Problem with tour operator Increase in operation input Local community problems T 21 Vandalism 3,4 1,0 7,0 3,4 4 Govern change for ex rules Damage reputation (T
6 Oil spill in Aldabra 4,7 2,5 3,0 11,75 3,8 Loss of fundraising/WH status 19 Damage reputation (Tourists) 2 2,0 8,0 4 3,4
18 Damage reputation (Science/NGO) 1,2 2,0 8,0 2,4 2,7 Damage reputation (Science/NGO) 22 Strike 3 2,0 6,0 6 2,4 Impact Probability 24 Loss of fundraising/WH status 1 1,0 5,0 1 1 APPENDIX 10.35 A. Weights
Please select the relative importance (weights) of the risk dimensions. The sum of the weights must equal to 1
Dimensions of Riak Impact Financial Importance 0,8 Environmental Conservational Importance 0,2 Other Factor 01 0,0 Other Factor 02 0,0 total 1,0 correct
Dimensions of Riak Probability Time of occurance per time period 1,0 Factor 02 0,0 Fcator 03 0,0 Factor 04 0,0 total 1,0 correct
B. Rating MATRIX
LEVEL OF CONTROL (please rank from 0.1-1.0, with 1.0 being the highest code RISK ELEMENTS IMPACT (please rank from 1-5, with 5 being the highest impact) LIKELIHOOD OF OCCURANCE (please rank from 1-5, with 5 being the highest probability) level of control) Impact Probability Control Financial weighting Environmental weighting Other Factor 01 Weighting Other Factor 02 Weighting TOTAL 1 weighting 2 weighting 3 Weighting 4 Weighting TOTAL TOTAL TOTAL TOTAL TOTAL 1 Global Warming 1 0,8 5 0,2 0,0 0,0 1,8 3,0 1,0 0,0 0,0 0,0 3,0 1,0 Global Warming 1,8 3,0 1,0 2 Fire 5 0,8 5 0,2 0,2 0,2 5 2,5 1,0 0,0 0,0 0,0 2,5 3,0 Fire 5,0 2,5 3,0 3 Major Storm 2 0,8 2 0,2 0,2 0,2 2 2,0 1,0 0,0 0,0 0,0 2,0 1,0 Major Storm 2,0 2,0 1,0 4 Other natural disaster 3 0,8 4 0,2 0,2 0,2 3,2 3,0 1,0 0,0 0,0 0,0 3,0 2,0 Other natural disaster 3,2 3,0 2,0 5 Poaching 2 0,8 2 0,2 0,2 0,2 2 4,0 1,0 0,0 0,0 0,0 4,0 7,0 Poaching 2,0 4,0 7,0 6 Oil spill in Aldabra 3,5 0,8 5 0,2 0,2 0,2 3,8 1,0 1,0 0,0 0,0 0,0 1,0 4,0 Oil spill in Aldabra 3,8 1,0 4,0 7 Leaking/Fraud 2 0,8 1 0,2 0,2 0,2 1,8 3,5 1,0 0,0 0,0 0,0 3,5 8,0 Leaking/Fraud 1,8 3,5 8,0 8 Competition from F.F. 5 0,8 1 0,2 0,2 0,2 4,2 4,5 1,0 0,0 0,0 0,0 4,5 8,0 Competition from F.F. 4,2 4,5 8,0 9 Problem with tour operator 4 0,8 1 0,2 0,2 0,2 3,4 3,0 1,0 0,0 0,0 0,0 3,0 8,0 Problem with tour operator 3,4 3,0 8,0 10 Tourism drop in Seychelles 5 0,8 1 0,2 0,2 0,2 4,2 3,0 1,0 0,0 0,0 0,0 3,0 2,0 Tourism drop in Seychelles 4,2 3,0 2,0 11 Increase in operation input 3 0,8 1 0,2 0,2 0,2 2,6 3,0 1,0 0,0 0,0 0,0 3,0 9,0 Increase in operation input 2,6 3,0 9,0 12 Govern change for ex rules 5 0,8 1 0,2 0,2 0,2 4,2 3,0 1,0 0,0 0,0 0,0 3,0 3,0 Govern change for ex rules 4,2 3,0 3,0 13 Lose relationship with IDC 2 0,8 1 0,2 0,2 0,2 1,8 3,0 1,0 0,0 0,0 0,0 3,0 6,0 Lose relationship with IDC 1,8 3,0 6,0 14 Security issues 4 0,8 4 0,2 0,2 0,2 4 3,0 1,0 0,0 0,0 0,0 3,0 7,0 Security issues 4,0 3,0 7,0 15 Accident (human) 3 0,8 1 0,2 0,2 0,2 2,6 3,0 1,0 0,0 0,0 0,0 3,0 9,0 Accident (human) 2,6 3,0 9,0 16 Accident (environ) 2 0,8 3 0,2 0,2 0,2 2,2 2,0 1,0 0,0 0,0 0,0 2,0 3,0 Accident (environ) 2,2 2,0 3,0 17 Lose key staff 2 0,8 1 0,2 0,2 0,2 1,8 3,0 1,0 0,0 0,0 0,0 3,0 5,0 Lose key staff 1,8 3,0 5,0 18 Damage reputation (Science/NGO) 2 0,8 1 0,2 0,2 0,2 1,8 1,5 1,0 0,0 0,0 0,0 1,5 5,0 Damage reputation (Science/NGO) 1,8 1,5 5,0 19 Damage reputation (Tourists) 4 0,8 1 0,2 0,2 0,2 3,4 1,0 1,0 0,0 0,0 0,0 1,0 7,0 Damage reputation (Tourists) 3,4 1,0 7,0 20 Govern split two sites 5 0,8 3,5 0,2 0,2 0,2 4,7 2,5 1,0 0,0 0,0 0,0 2,5 3,0 Govern split two sites 4,7 2,5 3,0 21 Vandalism 2 0,8 2 0,2 0,2 0,2 2 2,0 1,0 0,0 0,0 0,0 2,0 8,0 Vandalism 2,0 2,0 8,0 5 22 Strike 1 0,8 2 0,2 0,2 0,2 1,2 2,0 1,0 0,0 0,0 0,0 2,0 8,0 Strike 1,2 2,0 8,0 23 Local community problems 3 0,8 3 0,2 0,2 0,2 3 2,0 1,0 0,0 0,0 0,0 2,0 6,0 Local community problems 3,0 2,0 6,0 24 Loss of fundraising/WH status 1 0,8 1 0,2 0,2 0,2 1 1,0 1,0 0,0 0,0 0,0 1,0 5,0 Loss of fundraising/WH status 1,0 1,0 5,0 4
code RISK ELEMENTS Impact Probability Control calc Total Risk 8 Competition from F.F. 1,8 3,0 1,0 5,4 18,9 3 10 Tourism drop in Seychelles 5 2,5 3,0 12,5 12,6 12 Govern change for ex rules 2 2,0 1,0 4 12,6 2 Fire 3,2 3,0 2,0 9,6 12,5 14 Security issues 2 4,0 7,0 8 12 1 20 Govern split two sites 3,8 1,0 4,0 3,8 11,75 9 Problem with tour operator 1,8 3,5 8,0 6,3 10,2 4 Other natural disaster 4,2 4,5 8,0 18,9 9,6 5 Poaching 3,4 3,0 8,0 10,2 8 0 . 11 Increase in operation input 4,2 3,0 2,0 12,6 7,8 f .F
15 Accident (human) 2,6 3,0 9,0 7,8 7,8 Fire Strike arming
7 Leaking/Fraud 4,2 3,0 3,0 12,6 6,3 ourists) Aldabra andalism 6 Poaching 23 Local community problems 1,8 3,0 6,0 5,4 V
1 Global Warming 4 3,0 7,0 12 5,4 Major Storm Lose key staf Leaking/Fraud Security issues
13 Lose relationship with IDC 2,6 3,0 9,0 7,8 5,4 Global W Accident (human) Oil spill in 17 Lose key staff 2,2 2,0 3,0 4,4 5,4 Accident (environ) Competition from F Govern split two sites 16 Accident (environ) 1,8 3,0 5,0 5,4 4,4 Other natural disaster 3 Major Storm 1,8 1,5 5,0 2,7 4 ourism drop in Seychelles Lose relationship with IDC Problem with tour operator Increase in operation input Local community problems T 21 Vandalism 3,4 1,0 7,0 3,4 4 Govern change for ex rules Damage reputation (T
6 Oil spill in Aldabra 4,7 2,5 3,0 11,75 3,8 Loss of fundraising/WH status 19 Damage reputation (Tourists) 2 2,0 8,0 4 3,4
18 Damage reputation (Science/NGO) 1,2 2,0 8,0 2,4 2,7 Damage reputation (Science/NGO) 22 Strike 3 2,0 6,0 6 2,4 Impact Probability 24 Loss of fundraising/WH status 1 1,0 5,0 1 1 Comments / Definitions: 1. Risk Impact Ratings took into account financial impact APPENDIX 10.36 SIF Risk Evaluation Framework & environment impact 2. Likelihood of occurrence is defined from frequency and location of event Competition 3. “Safety & Security” Risk Government from Fond include: Poaching, Human Intervention Ferdinand Accidents, Vandalism etc 4. “Natural Disasters” Risk Natural Market include: Global warming, Disasters Shifts Fires, Major storms and other natural disasters 5. “Government Intervention” Risk includes: Changes in Legislation, Possibility of Safety & spliting SIF operations (in Security Aldabra and Vallee de Mai) Risk Impact 6. “Human Resource Issues” Relationship Human High Priority Risk includes: Loss of key Management staff, strikes, Fraud etc Resources Risk Items Issues Issues 7. “Relationship Management Issues” Risk includes: Local Community problems, Low Priority Damage in Reputation, Risk Items Problems with suppliers, Problems with Tour Operators etc
Low High 8. “Market Shifts” Risk includes: Drop in tourism in Seychelles etc Low Likelihood of Occurrence High Bwindi-Mghahinga Financial Statistics APPENDIX 10.37
Income Expenditure BWINDI BWINDI BINP/MGNPSplit of Income 2001-2 2002-3 2003-4 2001-2 2002-3 2003-4 2001-2 2002-3 2003-4 Source of Funds Shs '000 Shs '000 Shs '000 Expenditure Shs '000 Shs '000 Shs '000 Source of Funds BINP MGNP BINP MGNP BINP MGNP Park entry and recreation 1 520 170 1 975 484 2 546 577 Payroll related 189 035 241 006 251 514 Park entry and recreation 79% 21% 78% 22% 85% 15% Concessions and income 22 007 37 893 12 483 Other personnel 11 172 142 446 153 845 Concessions and income 100% 0% 100% 0% 100% 0% Other internally generated income 25 618 12 295 12 985 Printing, photocopying, 3 964 3 048 4 167 Other internally generated stationery income 95% 5% 89% 11% 93% 7% Govt. subvention and donor support 39 878 0 7 040 Uniform and other supplies 1 315 902 935 Govt. subvention and donor support 100% 0% N/A N/A 100% 0% Total 1 607 673 2 025 672 2 579 085 Advertising and exhibition 607 4 612 600 Total 79% 21% 79% 21% 85% 15% Utilities 40 783 47 758 53 873 Audit and consultancies 0 0 6 000 BINP/MGNPSplit of MGHAHINGA Expenditure 2001-2 2002-3 2003-4 Repairs and maintenance 45 371 50 722 73 020 2001-2 2002-3 2003-4 Source of Funds Shs '000 Shs '000 Shs '000 Insurance 0 24 0 Expenditure BINP MGNP BINP MGNP BINP MGNP Park entry and recreation 416 273 541 469 462 350 Other expenses 95 039 11 976 69 402 Payroll related 71% 29% 71% 29% 73% 27% Concessions and income 0 0 0 Total 387 286 502 494 613 356 Other personnel 73% 27% 73% 27% 66% 34% Other internally generated income 1 347 1 526 963 Printing, photocopying, stationery 60% 40% 46% 54% 50% 50% Govt. subvention and donor support 0 0 0 MGHAHINGA Uniform and other supplies 85% 15% 64% 36% 71% 29% Total 417 620 542 995 463 313 2001-2 2002-3 2003-4 Advertising and exhibition 65% 35% 100% 0% 100% 0% Expenditure Shs '000 Shs '000 Shs '000 Utilities 53% 47% 61% 39% 70% 30% BINP/MGNP TOTAL Payroll related 76 265 100 246 92 894 Audit and consultancies N/A N/A 0% 100% 100% 0% 2001-2 2002-3 2003-4 Other personnel 4 228 52 073 79 851 Repairs and maintenance 57% 43% 60% 40% 71% 29% Printing, photocopying, 2 602 3 616 4 126 Insurance Source of Funds Shs '000 Shs '000 Shs '000 stationery N/A N/A 40% 60% N/A N/A Park entry and recreation 1 936 443 2 516 953 3 008 927 Uniform and other supplies 228 511 374 Other expenses 56% 44% 58% 42% 82% 18% Concessions and income 22 007 37 893 12 483 Advertising and exhibition 325 12 0 Total 63% 37% 40% 60% 71% 29% Other internally generated income 26 965 13 821 13 948 Utilities 35 744 31 060 23 444 Total 63% 37% 69% 31% 71% 29% Govt. subvention and donor support 39 878 0 7 040 Audit and consultancies 0 510 000 0 Total 2 025 293 2 568 667 3 042 398 Repairs and maintenance 34 290 33 138 29 414 % BINP 79% 79% 85% Insurance 0 36 0 %MGNP 21% 21% 15% Other expenses 75 589 8 557 15 144 Total 229 271 739 249 245 247
BINP/MGNP TOTAL 2001-2 2002-3 2003-4 Expenditure Shs '000 Shs '000 Shs '000 Payroll related 265 300 341 252 344 408 Other personnel 15 400 194 519 233 696 Printing, photocopying, 6 566 6 664 8 293 stationery Uniform and other supplies 1 543 1 413 1 309 Advertising and exhibition 932 4 624 600 Utilities 76 527 78 818 77 317 Audit and consultancies 0 510 000 6 000 Repairs and maintenance 79 661 83 860 102 434 Insurance 0 60 0 Other expenses 170 628 20 533 84 546 Total 616 557 1 241 743 858 603 % BINP 63% 69% 71% %MGNP 37% 31% 29% Bwindi NP Income Source Statistics 2000-2004 Bwindi NP Income Source Statistics 2000-2004
3 000 000 2 600 000 BINP-MGNP Combined Income 2003-4
2001-2 1 950 000 2002-3 2 250 000 2003-4 Park entry and recreation Concessions and income 1 300 000 Other internally generated income 1 500 000 Govt. subvention and donor support Govt. and donor Shs '000s Internally generated Concessions 650 000 750 000 Park Entry + Rec.
0 Park entry and recreation Other internally generated income 0 2001-2 2002-3 2003-4
Mghahinga NP Income Source Statistics 2000-2004 Mghahinga NP Income Source Statistics 2000-2004 600 000 550 000
2001-2 450 000 412 500 2002-3 2003-4
275 000 300 000
Shs '000s Govt. and donor Internally generated Concessions 137 500 150 000 Park Entry + Rec.
0 Park entry and recreation Other internally generated income 0 2001-2 2002-3 2003-4
BINP-MGNP Combined Income Statistics 2000-2004 BINP-MGNP Combined Income Statistics 2000-2004 4 000 000 3 200 000
2001-2 2 400 000 2002-3 3 000 000 2003-4
% BINP 1 600 000 2 000 000 Govt. and donor Internally generated Shs '000s Concessions Park Entry + Rec. 800 000 1 000 000
0 Park entry and recreation Other internally generated income 0 2001-2 2002-3 2003-4 Bwindi NP Expenditure Statistics 2000-2004 Bwindi NP Expenditure Statistics 2000-2004 * excludes consulting fees 300 000 800 000 Other Insurance Maintenance Consulting fees Utilities 2001-2 600 000 227 500 Advertising 2002-3 Uniforms 2003-4 Printing, stationery Other personnel 400 000 Payroll 155 000 Shs '000s Shs '000s
200 000 82 500
0 10 000 2001-2 2002-3 2003-4 Payroll related Other personnel Utilities Repairs and maintenance Other expenses
Mghahinga NP Expenditure Statistics 2000-2004 Mghahinga NP Expenditure Statistics 2000-2004 * excludes consulting fees 800 000 150 000 Other Insurance Maintenance Consulting fees Utilities 600 000 113 500 2001-2 Advertising 2002-3 Uniforms 2003-4 Printing, stationery Other personnel Payroll 400 000 77 000 Shs '000s Shs '000s
200 000 40 500
0 4 000 2001-2 2002-3 2003-4 Payroll related Other personnel Utilities Repairs and maintenance Other expenses BINP-MGNP Combined Expenditure 2000-2004 BINP-MGNP Combined Expenditure Statistics 2000-2004 * excludes consulting fees 1 500 000 Other 400 000 Insurance Maintenance Consulting fees Utilities 2001-2 1 125 000 Advertising 303 750 2002-3 Uniforms 2003-4 Printing, stationery Other personnel Payroll 750 000 207 500 Shs '000s Shs '000s
375 000 111 250
0 15 000 2001-2 2002-3 2003-4 Payroll related Other personnel Utilities Repairs and maintenance Other expenses APPENDIX 10.38
MONTHLY BUDGET 2007/8 APR. MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC. JAN. FEB. MAR. TOTALS BIODIVERSITY £ 10 763,00 £ 11 544,00 £ 10 243,00 £ 7 767,00 £ 7 643,00 £ 8 663,00 £ 6 304,00 £ 6 799,00 £ 2 554,00 £ 3 867,00 £ 4 652,00 £ 7 698,00 £ 88 497,00 ACTION FOR WILDLIFE £ 5 487,00 £ 8 342,00 £ 8 724,00 £ 5 908,00 £ 6 302,00 £ 5 983,00 £ 5 674,00 £ 3 633,00 £ 2 113,00 £ 1 067,00 £ 2 006,00 £ 1 342,00 £ 56 681,00 MOORLANDS £ 17 677,00 £ 19 808,00 £ 21 432,00 £ 17 865,00 £ 18 766,00 £ 10 765,00 £ 8 776,00 £ 11 630,00 £ 8 634,00 £ 6 512,00 £ 3 076,00 £ 3 378,00 £ 148 319,00 WOODLANDS £ 25 755,00 £ 26 890,00 £ 23 877,00 £ 15 877,00 £ 16 321,00 £ 16 743,00 £ 14 863,00 £ 7 866,00 £ 6 721,00 £ 6 438,00 £ 7 985,00 £ 9 010,00 £ 178 346,00 ANCIENT WOODLAND £ 10 114,00 £ 13 543,00 £ 11 412,00 £ 12 321,00 £ 9 239,00 £ 8 643,00 £ 7 307,00 £ 5 054,00 £ 4 311,00 £ 2 103,00 £ 1 978,00 £ 1 663,00 £ 87 688,00 HILL FARM PROJECT £ 6 877,00 £ 4 321,00 £ 7 750,00 £ 7 432,00 £ 6 748,00 £ 5 329,00 £ 5 476,00 £ 3 290,00 £ 3 112,00 £ 2 122,00 £ 6 504,00 £ 6 750,00 £ 65 711,00 FARMED LAND £ 10 312,00 £ 9 864,00 £ 11 213,00 £ 9 974,00 £ 8 967,00 £ 8 102,00 £ 6 231,00 £ 7 110,00 £ 6 540,00 £ 3 211,00 £ 2 008,00 £ 1 781,00 £ 85 313,00 WETLAND £ 5 875,00 £ 4 003,00 £ 5 873,00 £ 5 276,00 £ 5 211,00 £ 5 794,00 £ 3 779,00 £ 3 141,00 £ 3 005,00 £ 2 900,00 £ 2 005,00 £ 2 143,00 £ 49 005,00 NATURAL ENVIRONMENT £ 92 860,00 £ 98 315,00 £ 100 524,00 £ 82 420,00 £ 79 197,00 £ 70 022,00 £ 58 410,00 £ 48 523,00 £ 36 990,00 £ 28 220,00 £ 30 214,00 £ 33 765,00 £ 759 560,00
ARCHAEOLOGY £ 13 643,00 £ 14 788,00 £ 12 760,00 £ 12 432,00 £ 13 500,00 £ 13 211,00 £ 12 297,00 £ 12 290,00 £ 10 755,00 £ 9 530,00 £ 11 500,00 £ 10 777,00 £ 147 483,00 BUILT ENVIRONMENT £ 13 408,00 £ 13 340,00 £ 12 213,00 £ 11 987,00 £ 12 230,00 £ 11 200,00 £ 10 870,00 £ 11 280,00 £ 10 700,00 £ 10 766,00 £ 11 987,00 £ 13 749,00 £ 143 730,00 LOCAL CUSTOMS £ 2 460,00 £ 3 450,00 £ 2 666,00 £ 8 576,00 CULTURAL HERITAGE £ 27 051,00 £ 30 588,00 £ 28 423,00 £ 24 419,00 £ 25 730,00 £ 24 411,00 £ 23 167,00 £ 23 570,00 £ 24 121,00 £ 20 296,00 £ 23 487,00 £ 24 526,00 £ 299 789,00
VISITOR MANAGEMENT £ 19 782,00 £ 20 900,00 £ 22 566,00 £ 22 700,00 £ 23 880,00 £ 23 455,00 £ 13 370,00 £ 12 105,00 £ 9 569,00 £ 9 700,00 £ 9 700,00 £ 12 670,00 £ 201 397,00 ACCESS TO MOUNTAINS £ 9 580,00 £ 11 005,00 £ 10 580,00 £ 10 580,00 £ 10 580,00 £ 9 942,00 £ 8 912,00 £ 7 590,00 £ 6 340,00 £ 5 800,00 £ 5 800,00 £ 10 230,00 £ 106 939,00 RIGHTS OF WAY £ 9 630,00 £ 10 900,00 £ 11 500,00 £ 11 230,00 £ 9 870,00 £ 9 800,00 £ 9 800,00 £ 6 580,00 £ 6 580,00 £ 6 700,00 £ 6 700,00 £ 9 637,00 £ 107 927,00 RECREATION £ 38 992,00 £ 42 805,00 £ 44 646,00 £ 44 510,00 £ 44 330,00 £ 43 197,00 £ 32 082,00 £ 26 275,00 £ 22 489,00 £ 22 200,00 £ 22 200,00 £ 32 537,00 £ 416 263,00
INFORMATION SERVICE £ 16 900,00 £ 21 860,00 £ 21 055,00 £ 20 800,00 £ 19 377,00 £ 13 756,00 £ 11 560,00 £ 8 900,00 £ 5 400,00 £ 5 400,00 £ 5 400,00 £ 14 780,00 £ 165 188,00 VISITOR CENTRES £ 37 500,00 £ 23 450,00 £ 37 890,00 £ 22 980,00 £ 21 321,00 £ 12 345,00 £ 16 585,00 £ 42 670,00 £ 38 790,00 £ 27 654,00 £ 47 549,00 £ 49 800,00 £ 378 534,00 VALUES COMMUNICATION £ 21 530,00 £ 23 670,00 £ 22 900,00 £ 21 760,00 £ 21 650,00 £ 19 725,00 £ 17 600,00 £ 9 805,00 £ 7 750,00 £ 7 659,00 £ 11 890,00 £ 26 760,00 £ 212 699,00 EDUCATION £ 12 789,00 £ 13 580,00 £ 14 480,00 £ 13 345,00 £ 13 450,00 £ 13 464,00 £ 13 560,00 £ 13 567,00 £ 7 864,00 £ 5 670,00 £ 5 670,00 £ 12 890,00 £ 140 329,00 PROMOTING U/STANDING £ 88 719,00 £ 82 560,00 £ 96 325,00 £ 78 885,00 £ 75 798,00 £ 59 290,00 £ 59 305,00 £ 74 942,00 £ 59 804,00 £ 46 383,00 £ 70 509,00 £ 104 230,00 £ 896 750,00
RANGER SERVICE £ 57 047,00 £ 57 047,00 £ 57 047,00 £ 57 047,00 £ 57 047,00 £ 57 047,00 £ 57 047,00 £ 22 340,00 £ 22 340,00 £ 22 340,00 £ 22 340,00 £ 57 047,00 £ 545 736,00
CONSERVATION WORKS £ 17 370,00 £ 23 451,00 £ 27 860,00 £ 22 346,00 £ 21 324,00 £ 24 009,00 £ 22 926,00 £ 7 765,00 £ 6 780,00 £ 4 567,00 £ 7 789,00 £ 22 245,00 £ 208 432,00
DEVELOPMENT CONTROL £ 56 732,00 £ 61 607,00 £ 55 700,00 £ 42 789,00 £ 44 506,00 £ 38 905,00 £ 47 002,00 £ 34 098,00 £ 41 002,00 £ 37 090,00 £ 49 320,00 £ 52 032,00 £ 560 783,00
FORWARD PLANNING £ 25 272,00 £ 21 567,00 £ 23 410,00 £ 28 900,00 £ 29 876,00 £ 31 673,00 £ 24 113,00 £ 26 790,00 £ 23 411,00 £ 21 345,00 £ 24 788,00 £ 22 122,00 £ 303 267,00
CORPORATE £ 32 088,00 £ 31 799,00 £ 23 900,00 £ 22 100,00 £ 27 805,00 £ 19 004,00 £ 28 099,00 £ 27 978,00 £ 26 017,00 £ 22 310,00 £ 25 770,00 £ 25 343,00 £ 312 213,00
INFORMATION TECH. £ 24 088,00 £ 13 450,00 £ 17 655,00 £ 12 322,00 £ 19 086,00 £ 22 340,00 £ 21 007,00 £ 19 005,00 £ 27 980,00 £ 24 566,00 £ 14 679,00 £ 20 329,00 £ 236 507,00 CENTRAL SERVICES £ 47 567,00 £ 42 998,00 £ 44 567,00 £ 43 121,00 £ 49 004,00 £ 41 232,00 £ 40 056,00 £ 49 076,00 £ 41 213,00 £ 47 008,00 £ 42 854,00 £ 51 016,00 £ 539 712,00 OFFICE ACCOMMODATION £ 12 378,00 £ 12 378,00 £ 12 378,00 £ 12 378,00 £ 12 378,00 £ 12 378,00 £ 12 378,00 £ 12 378,00 £ 12 378,00 £ 12 378,00 £ 12 388,00 £ 12 388,00 £ 148 556,00 PROPERTY M'TENANCE £ 4 233,00 £ 7 598,00 £ 2 692,00 £ 5 679,00 £ 2 505,00 £ 5 488,00 £ 2 709,00 £ 2 145,00 £ 2 003,00 £ 2 910,00 £ 2 034,00 £ 3 004,00 £ 43 000,00 TRAINING £ 3 400,00 £ 5 420,00 £ 4 800,00 £ 6 700,00 £ 3 580,00 £ 5 899,00 £ 2 006,00 £ 1 788,00 £ 2 196,00 £ 2 433,00 £ 2 310,00 £ 2 602,00 £ 43 134,00 CENTRAL FUNCTION £ 91 666,00 £ 81 844,00 £ 82 092,00 £ 80 200,00 £ 86 553,00 £ 87 337,00 £ 78 156,00 £ 84 392,00 £ 85 770,00 £ 89 295,00 £ 74 265,00 £ 89 339,00 £ 1 010 909,00
TOTAL £ 527 797,00 £ 524 277,00 £ 539 927,00 £ 483 616,00 £ 492 166,00 £ 454 895,00 £ 430 307,00 £ 376 664,00 £ 348 724,00 £ 314 046,00 £ 350 682,00 £ 463 186,00 £ 5 306 287,00
ANNUAL ALLOCATIONS This chart represents the proportionate allocations of expenditure across the functions of a protected area for the years 2003-2009. The first column refers to the statutory purposes for which the area was designated – the first purpose relates to natural ad cultural conservation, whilst the second refers to the management of visitors and helping to understand the work of the area. There is also a development control function – the authorities have a duty to determine any proposals for development that might affect the two purposes. The last purpose relates to the internal functioning of the organisation.
CHART A
APPENDIX 10.26
APPENDIX 10.39
These charts illustrate the projected spend for a protected area authority (based on 2005 figures). The sources of income are mainly from government, which provides about 80%-85% of the funding. So the purpose of this area’s plan is to demonstrate how much it will need based on past activities, and how much it says it will need for the next years. The first chart relates to the overall spend, whilst the remainder refer to each of the area’s purposes and functions (see Chart A).
CHART B
CHART C
APPENDIX 10.40 Annual Statement of Accounts for a UK Protected Area (Category V)
Note: these statements summarise a full statement of accounts that includes: A statement of responsibilities for financial management Statement of internal control Auditor’s report Cash flow statement for the year BALANCE SHEET (Years 1 - 5) As of the Year Ending: APPENDIX 10.41
Assets Year 1 Year 2 Year 3 Year 4 Year 5 Current Assets Cash 0 $ 0 $ 0 $ 0 $ 0 $ Investments 0 $ 0 $ 0 $ 0 $ 0 $ Accounts Receivable 0 $ 0 $ 0 $ 0 $ 0 $ Notes Receivable 0 $ 0 $ 0 $ 0 $ 0 $ Inventory 0 $ 0 $ 0 $ 0 $ 0 $ Other Current Assets 0 $ 0 $ 0 $ 0 $ 0 $ Total Current Assets 0 $ 0 $ 0 $ 0 $ 0 $
Plant & Equipment Land 0 $ 0 $ 0 $ 0 $ 0 $ Buildings 0 $ 0 $ 0 $ 0 $ 0 $ Building/Leasehold Improvements 0 $ 0 $ 0 $ 0 $ 0 $ Machinery & Equipment 0 $ 0 $ 0 $ 0 $ 0 $ Office Equipment 0 $ 0 $ 0 $ 0 $ 0 $ Automobiles 0 $ 0 $ 0 $ 0 $ 0 $ Less Accumulated Depreciation 0 $ 0 $ 0 $ 0 $ 0 $ <--- Enter depreciation values as negative numbers Total Net Plant & Equipment 0 $ 0 $ 0 $ 0 $ 0 $
Other Assets 0 $ 0 $ 0 $ 0 $ 0 $
Total Assets 0 $ 0 $ 0 $ 0 $ 0 $ <--- Must equal Total Liabilities & Equity
Liabilities & Owners' Equity Current Liabilities Short Term Debt 0 $ 0 $ 0 $ 0 $ 0 $ Accounts Payable 0 $ 0 $ 0 $ 0 $ 0 $ Other Payables 0 $ 0 $ 0 $ 0 $ 0 $ Accrued Liabilities 0 $ 0 $ 0 $ 0 $ 0 $ Total Current Liabilities 0 $ 0 $ 0 $ 0 $ 0 $
Long Term Debt 0 $ 0 $ 0 $ 0 $ 0 $ Total Liabilities 0 $ 0 $ 0 $ 0 $ 0 $
Owner/Stockholder Equity Common Stock 0 $ 0 $ 0 $ 0 $ 0 $ Retained Earnings 0 $ 0 $ 0 $ 0 $ 0 $ Less Dividends Payable 0 $ 0 $ 0 $ 0 $ 0 $ <--- Enter dividends payable values as negative numbers Total Owners' Equity 0 $ 0 $ 0 $ 0 $ 0 $
Total Liabilities & Equity 0 $ 0 $ 0 $ 0 $ 0 $ <--- Must equal Total Assets
*** RATIOS ***
Current Ratio Current Assets / Current Liabilities Quick Ratio (Acid Test) Quick Assets (Cash + Receivables) / Current Liabilities Total Debt to Total Assets Total Liabilities / Total Assets
Total Debt to Owners' Equity Total Liabilities / Total Owners' Equity
CAUTION: These ratios are only valid if your Balance Sheet is in balance. CASH FLOW STATEMENT (Years 1 - 5) APPENDIX 10.42 Sources of Cash: Year 1 Year 2 Year 3 Year 4 Year 5 Operations during the year: Net Income After Taxes 0 $ 0 $ 0 $ 0 $ 0 $ Add items not decreasing cash Depreciation 0 $ 0 $ 0 $ 0 $ 0 $ Increase in Accounts Payable 0 $ 0 $ 0 $ 0 $ 0 $ Increase in Other Payables 0 $ 0 $ 0 $ 0 $ 0 $ Increase in Accrued Liabilities 0 $ 0 $ 0 $ 0 $ 0 $
Deduct items not increasing cash Increase in Accounts Receivable 0 $ 0 $ 0 $ 0 $ 0 $ Increase in Inventory 0 $ 0 $ 0 $ 0 $ 0 $
Cash from Operations 0 $ 0 $ 0 $ 0 $ 0 $
Financing & Other: Sale of Stock 0 $ 0 $ 0 $ 0 $ 0 $ Proceeds from Short Term Loans 0 $ 0 $ 0 $ 0 $ 0 $ Proceeds from Long Term Loans 0 $ 0 $ 0 $ 0 $ 0 $ Sale of Investments 0 $ 0 $ 0 $ 0 $ 0 $ Collection of Notes Receivable 0 $ 0 $ 0 $ 0 $ 0 $ Reduction of Other Current Assets 0 $ 0 $ 0 $ 0 $ 0 $ Reduction of Other Assets 0 $ 0 $ 0 $ 0 $ 0 $
Cash from Operations & Financing 0 $ 0 $ 0 $ 0 $ 0 $
Applications of Cash: Payment of Dividends 0 $ 0 $ 0 $ 0 $ 0 $ Purchases of Fixed Assets 0 $ 0 $ 0 $ 0 $ 0 $ Repayment of Short Term Loans 0 $ 0 $ 0 $ 0 $ 0 $ Repayment of Long Term Loans 0 $ 0 $ 0 $ 0 $ 0 $ Purchase of Investments 0 $ 0 $ 0 $ 0 $ 0 $ Increase in Notes Receivable 0 $ 0 $ 0 $ 0 $ 0 $ Increase in Other Current Assets 0 $ 0 $ 0 $ 0 $ 0 $ Increase in Other Assets 0 $ 0 $ 0 $ 0 $ 0 $
Increase/(Decrease) in Cash 0 $ 0 $ 0 $ 0 $ 0 $
Change in Cash Balance Beginning Cash Balance 0 $ 0 $ 0 $ 0 $ 0 $ Increase/(Decrease) in Cash 0 $ 0 $ 0 $ 0 $ 0 $ Ending Cash Balance 0 $ 0 $ 0 $ 0 $ 0 $ Profit & Loss Statement (Years 1 - 5) APPENDIX 10.43
% of Total % of Total % of Total % of Total % of Total Sales Year 1 Sales Year 2 Sales Year 3 Sales Year 4 Sales Year 5 Sales Product/Service A-Product 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% Product/Service B-Parts 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% Product/Service C-Service 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% Product/Service D 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% Product/Service E 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% Product/Service F 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00%
Total Sales 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00%
Cost of Goods Sold Material 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% Labor 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00%
Total Variable COGS 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00%
Total Fixed Cost of Goods & Services 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00%
Total Cost of Goods Sold 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00%
Gross Profit 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00%
Operating Expenses Sales & Marketing 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% Research & Development 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% G & A (without Depreciation) 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% Depreciation 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00%
Total Operating Expenses 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00%
Income From Operations 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00%
Interest Income 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% Interest Expense 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% Income before Taxes 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% Taxes on Income 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00%
Net Income After Taxes 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% 0 $ 0,00% APPENDIX 10.44
These charts illustrate the projected spend for a protected area authority (based on 2005 figures). The sources of income are mainly from government, which provides about 80%-85% of the funding. So the purpose of this area’s plan is to demonstrate how much it will need based on past activities, and how much it says it will need for the next years. The first chart relates to the overall spend, whilst the remainder refer to each of the area’s purposes and functions (see Chart A).
CHART B
CHART C
CHART D
CHART E
CHART F
APPENDIX 10.45
This chart represents the proportionate allocations of expenditure across the functions of a protected area for the years 2003-2009. The first column refers to the statutory purposes for which the area was designated – the first purpose relates to natural ad cultural conservation, whilst the second refers to the management of visitors and helping to understand the work of the area. There is also a development control function – the authorities have a duty to determine any proposals for development that might affect the two purposes. The last purpose relates to the internal functioning of the organisation.
CHART A
BMCA 3-YEAR BUDGET
APPENDIX 10.46
Sales Comments Projections Method Gorilla Permit fees Proportional to visitor numbers Other park fees Park entrance, nature walks, birding etc. Proportional to visitor numbers Concession income Proportional to visitor numbers Resale of Items T-shirts, publications, postcards etc. Proportional to visitor numbers + marketing effort
Total Sales
Cost of Goods Sold Cost of resale items Including: Cost of purchasing, transportation Proportional to visitor numbers + marketing effort Cost of gorilla tracking certificates Cost to print Proportional to visitor numbers
Total Variable COGS % of Total Sales
Fixed Cost of Goods & Services BINP-MGNP specific Payroll * Including total payroll costs for BINP and MGNP unit staffProportional to staff number projections Other personnel costs Including medical allowances, leave payments bonuses etc.Proportional to staff number projections Training Based on training gaps analysis (+ history) Printing, Photocopying and Stationery Based on history (+ one-off deviations due to special circumstances) Uniforms and supplies Based on history (+ one-off deviations due to special circumstances) Utilities Office running costs : electricity, water, telephone, fax Based on history (+ one-off deviations due to special circumstances) Vehicle running costs Fuel, oil, grease etc. Based on history (+ one-off deviations due to special circumstances) Repairs and maintenance - buildings Based on history (+ one-off deviations due to special circumstances) Repairs and maintenance - vehicles Based on history (+ one-off deviations due to special circumstances) Repairs and maintenance - equipment Computers, radios Based on history (+ one-off deviations due to special circumstances) Repairs and maintenance - roads Based on history (+ one-off deviations due to special circumstances) Costs of community workshops Based on history (+ one-off deviations due to special circumstances) Other expenses Based on history (+ one-off deviations due to special circumstances)
Total Fixed Cost of Goods & Services % of Total Sales
Total Cost of Goods Sold
Gross Profit % of Total Sales
Operating Expenses HQ specific Payroll Proportional to staff number projections Other personnel costs Proportional to staff number projections Training Based on training gaps analysis (+ history) Printing, Photocopying and Stationery Based on history (+ one-off deviations due to special circumstances) Uniforms and supplies Based on history (+ one-off deviations due to special circumstances) Utilities Based on history (+ one-off deviations due to special circumstances) Vehicle running costs Based on history (+ one-off deviations due to special circumstances) Audit and Consultancy fees Based on history (+ one-off deviations due to special circumstances) Repairs and maintenance - buildings Based on history (+ one-off deviations due to special circumstances) Repairs and maintenance - vehicles Based on history (+ one-off deviations due to special circumstances) Repairs and maintenance - equipment Based on history (+ one-off deviations due to special circumstances) Repairs and maintenance - roads Based on history (+ one-off deviations due to special circumstances) Insurance Based on history (+ one-off deviations due to special circumstances) Board of Trustee Expenses Based on history (+ one-off deviations due to special circumstances) PR and Entertainment Based on history (+ one-off deviations due to special circumstances) Bank Charges Projected by Finance based on accounts Exchange Losses Projected by Finance based on accounts Depreciation Projected by Finance based on accounts Other Expenses Based on history (+ one-off deviations due to special circumstances)
Total HQ Costs % of Total Sales
Sales & Marketing - HQ specific Advertising and exhibitions * Cost Item to be updated in line with marketing strategy Based on history + new marketing plan activities
Total Sales & Marketing Costs % of Total Sales
Total Operating Expenses % of Total Sales
Income From Operations % of Total Sales
Other Income Rents Based on history Fines Based on history Photographic Fees Based on history Research fees Based on history Interest earned Projected by Finance based on accounts Grants / Donations - Government Projected from Government medium term budget Grants / Donations - Donors Projected from planned funding applications and projects Grants / Donations - Other Based on history Other Income Based on history
Total Other Income % of Total Sales
Income before Taxes Taxes on Income
Net Income After Taxes % of Total Sales APPENDIX 10.47 Activity List
Key Strategic Goals Action Plan
Action Description Implementer Timeframe Execution 1 1 2 2 1 2 3 1 2 Key Financial Goals Action Plan
Action Description Implementer Timeframe Execution 1 1 2 3 2 1 2 3 3 1 2 3 Key Marketing Goals Action Plan
Action Description Implementer Timeframe Execution 1 1 2 3
APPENDIX 10.48
Objective 1 -
Priorities for Action By When Accountable Lead Support 1. 1.1 1.2 1.3 1.4 1.5
2.
2.1
2.2 2.3 2.4